Earned Income for IRA’s
Hello,
A client did minimal work last year and is wondering how much qualifying earned income they have to make an IRA contribution. Their W2 has different numbers in box 1 and box 3. In box 1 wages is listed as $3,000 and in box 3 shows $5,000.
Which number represents earned income for an IRA? Box 1 or Box 3?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2023-03-02 17:43
Box 1 less any amount in Box 11.