Contribution to Roth IRA
I have a 457 Deferred compensation plan (EE DEFERRALS 457(B)). This account is held by AIG Retirement Services. Each year AIG retirement services sends me a RMD from this account and sends me a form W-2. The W-2 states AIG is the employer and I am the employee. The amount of the RMD is in the wages and salary box. On my Federal Tax Form, this RMD amount is placed in the salary box and the W-2 is attached to the form. It is my understanding that as long as one has earnings one can contribute to a Roth IRA at any age. Would this RMD from my 457 Deferred Compensation Plan be considered earnings and could I then contribute to my Roth IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2019-12-13 18:07
The amount of earned income in Box 1 of the W-2 must be reduced by the amount in Box 11, so you would be left with no earned income to make a Roth contribution with. Check your last W-2 for Box 11.
Permalink Submitted by charles travis on Sat, 2019-12-14 14:11
Thank you.