Yes, it does. Please see this IRS reference: Topic No. 451 Individual Retirement Arrangements (IRAs) | Internal .... On that site you'll see this excerpt:
To contribute to a traditional IRA, you must be under age 70½ at the end of the tax year. You, and/or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment. Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes. Compensation doesn't include earnings and profits from property, such as rental income, interest and dividend income, or any amount received as pension or annuity income, or as deferred compensation. (Italics added).
Please note, though, that with the tax law changes, your alimony will not be included in income in 2018, and therefore is not qualifying income for an IRA contribution.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Sign In
