the only income ive made this year is from VA disability but since i cant add that to my tax forms it says my income was 0. Now i am being penalized for contributing more than $0 to my roth IRA. How can i fix this
02990
2 Replies
DoninGA
Level 15
Mar 10, 2025 1:27:23 PM
To contribute to a Roth IRA you must have taxable compensation. VA benefits are not taxable compensation nor are they entered on a tax return.
Vanessa A
Expert Alumni
Mar 10, 2025 1:30:05 PM
No. VA disability is not earned income and not taxable income so it would not count as income for your Roth IRA contributions.
You can withdraw the amount you put in it this year to avoid the overfunding penalty. This must be done by April 15th.