Retired with W-2

Forum|Forum|4 years ago
April 6, 2022
3 replies
19 views

We are using TurboTax Premier for our 2021 taxes.

My wife and I are retired and she receives a W-2 from her previous employer. The values in BOX 1,3, 5, 12a have the same values (the code for 12a is "C" (Taxable cost of group-term life insurance over $50,000)). Box 12a also have a value of "M" and "N" with different amounts.
Can she contribute that amount to her ROTH IRA for 2021?

Best answer by RobertB4444

The amount in box 1 counts as earned income so yes, you can contribute up to that amount to your wife's retirement account.

RobertB4444Answer

Level 15

The amount in box 1 counts as earned income so yes, you can contribute up to that amount to your wife's retirement account.

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webmbAuthor

Level 2

Is this considered "nondeductible contributions"?

DawnC

Level 15

Group Term Life Insurance. If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Wages are earned income.

Roth IRA contributions are nondeductible. Traditional IRA contributions can be tax-deductible.

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