topic Re: traditional ira contribution in Self employed

traditional ira contribution

2055 — Wed, 27 Oct 2021 17:31:28 GMT

I have had very little income from my work as a touring musician in 2020. I made some money from royalties and selling cds. But those earnings are not enough to cover traditional IRA contributions for myself and my wife.

However I did earn money from dividends and interest. I also earned money from unemployment. Which of these incomes can be counted as earned income that I can use to make IRA contributions?

Re: traditional ira contribution

VolvoGirl — Wed, 27 Oct 2021 17:37:33 GMT

Sorry only W2 wages and a Net Profit on Schedule C count as earned income and some Schedule K-1 income. Not interest or dividends or unemployment.

Re: traditional ira contribution

DoninGA — Wed, 27 Oct 2021 17:38:00 GMT

Neither unemployment compensation or interest and dividend income is taxable compensation. So they cannot be used for contributing to an IRA.