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October 27, 2021
Question

traditional ira contribution

  • October 27, 2021
  • 2 replies
  • 0 views

I have had very little income from my work as a touring musician in 2020. I made some money from royalties and selling cds. But those earnings are not enough to cover traditional IRA contributions for myself and my wife.

However I did earn money from dividends and interest. I also earned money from unemployment. Which of these incomes can be counted as earned income that I can use to make IRA contributions?

    2 replies

    VolvoGirl
    October 27, 2021

    Sorry only W2 wages and a Net Profit on Schedule C count as earned income and some Schedule K-1 income.  Not interest or dividends or unemployment.  

    DoninGA
    October 27, 2021

    Neither unemployment compensation or interest and dividend income is taxable compensation.  So they cannot be used for contributing to an IRA.