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Level 1

Earned income IRA

My wife and I are retired and she received a W-2 from her previous employer.  The values in BOX 1, 2, 3 12C and 16 are the same.  Can she contribute that amount to a ROTH IRA?   Box 12 also has M and N values

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Accepted Solutions
Critter-3
Level 15

Earned income IRA

Ok ... this is  income which can be used for IRA contributions since it is taxable imputed earnings reported on a W-2  ... this is reporting the cost of life insurance paid by the old employer  ON WHICH you owe SS & Medicare taxes.    https://www.irs.gov/taxtopics/tc451

 

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3 Replies
Critter-3
Level 15

Earned income IRA

What ???  On a W-2 box 1 & 2 should never be the same so I hope this is a typo on your behalf.

 

And what is the CODE in box 12c ?  

webmb
Level 1

Earned income IRA

You are correct... Box 2 is zero.

On the W2, in box 12 a-d it shows:

M 94.49

N 22.10

C 1524.00

Critter-3
Level 15

Earned income IRA

Ok ... this is  income which can be used for IRA contributions since it is taxable imputed earnings reported on a W-2  ... this is reporting the cost of life insurance paid by the old employer  ON WHICH you owe SS & Medicare taxes.    https://www.irs.gov/taxtopics/tc451

 

View solution in original post

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