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lydbacon
February 29, 2024
Solved

Can I buy an IRA with imputed income? I am retired and have only one W2 for imputed income. Is it eligible for an IRA purchase?

  • February 29, 2024
  • 2 replies
  • 0 views
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Best answer by dmertz

The IRS considers the amount in box 1 of the W-2 minus any amount in box 11 to be compensation that will support an IRA contribution.

2 replies

T
ThomasM125
February 29, 2024

You need earned income to make a contribution to an individual retirement account. The IRS defines earned income as it is associated with a W-2 reporting as "wages, salaries, tips and other employee pay..." Furthermore, the pay must be taxable. So it would seem the operative question here is if you consider yourself an employee. It would seem you are not, as you mention you are retired. So it is not likely the imputed income would qualify as Earned Income .

 

 

 

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    D
    dmertzAnswer
    Employee
    February 29, 2024

    The IRS considers the amount in box 1 of the W-2 minus any amount in box 11 to be compensation that will support an IRA contribution.

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