Social Security Disability as Earned Income
An investment client is being told by his accountant that he can count his social security disability as earned income for purposes of making an IRA contribution because he has not yet reached retirement age. He is 62. I can find no support for that, except for disability payments that are included in Box 1 of a W-2 as wages. Any insights would be appreciated.
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-19 16:59
Either the accountant was incorrect, or there was a misunderstanding. SSDI is not earned income for IRA contribution purposes.