ROTH CONTRIBUTION
I have a client who is retired but is a director for an institution in which he is paid 10k annually. This is reported on his schedule C. Is this income considered wage income for a Roth contribution.
I have a client who is retired but is a director for an institution in which he is paid 10k annually. This is reported on his schedule C. Is this income considered wage income for a Roth contribution.
Permalink Submitted by Alan Spross on Tue, 2012-02-14 17:20
Yes.
Taxable compensation for IRA contribution purposes includes net earnings from self employment reduced by the deduction for retirement plan contributions on your behalf and the deduction for your part of self employment taxes.