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February 15, 2021
Question

IRA contribution on Health Club reimbursement

  • February 15, 2021
  • 1 reply
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I am retired from the City of New York and received a W-2 for $750 for TY 2020. That amount is the health club reimbursement check I received based on a union benefit.  They withheld Social Security and Medicare from the reimbursement, but no federal income tax.   The IRA instructions indicate: The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Both me and my wife WERE covered by a retirement plan but are not currently. We are collecting our government pensions with modified AGI > $124k.

 

My question is, can i contribute $750 to a regular IRA based on this W-2 income? Technically, it may not be earned income but thought I'd ask.

    1 reply

    Employee
    February 15, 2021

    The amount on a W-2 that the IRS considers to be compensation available to support a retirement contribution is the amount in box 1 minus any amount present in box 11.