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February 8, 2025
Question

Roth IRA Contribution

  • February 8, 2025
  • 2 replies
  • 0 views

My wife has a side gig and is compensated (earned income). There is no W-2.  I listed the income under Miscellaneous income.   After I entered a Roth IRA contribution the software told be I had an excess contribution.  Is a Roth contribution only allowed on W-2 income?

 

    2 replies

    Employee
    February 8, 2025

    The side gig is earned income which will allow a Roth contribution. But you have to report that income. She is self employed so must complete Schedule C. 

    Employee
    February 8, 2025

    This needs to be reported as income from self-employment, not miscellaneous income.