topic Why is contribution too high because earned income was zero, Done with income portion and our pensions and SS is much higher that the 7K contribution. TT Premier? in Retirement tax questions

Why is contribution too high because earned income was zero, Done with income portion and our pensions and SS is much higher that the 7K contribution. TT Premier?

royerz — Mon, 09 Mar 2026 05:55:58 GMT

2021 Roth IRA contribution was 7K. TT Premier says that contribution was too high because our earned income is zero. All our income is from pensions, SS and small trust distribution. Income portion of return is done and our income is much higher than 7K contribution. Have not taken any distributions.

Re: Why is contribution too high because earned income was zero, Done with income portion and our...

DaveF1006 — Wed, 16 Feb 2022 22:10:11 GMT

Yes this may be correct, but you need to have Earned Income to be able to contribute to a Roth. Pension and Trust income are considered unearned income thus not eligible income for Roth contribution considerations.

Re: Why is contribution too high because earned income was zero, Done with income portion and our pensions and SS is much higher that the 7K contribution. TT Premier?

Opus 17 — Wed, 16 Feb 2022 22:21:29 GMT

You can only contribute to an IRA if you have compensation.

Generally, compensation is what you earn from working. For a summary of what compensation does and doesn’t include, see Table 1-1. Compensation includes all of the items discussed next (even if you have more than one type).

Wages, salaries, etc.

Commissions.

Self-employment income.

Alimony and separate maintenance.

Nontaxable combat pay.

Graduate or postdoctoral study.