Certain Medicaid Waiver Payments
If someone’s only income is subject to 2014-7, certain medicaid waiver payments, and is exlcuded as income, (as an adjustment to income on line 8) does it still count as earned income to contribute to a Roth IRA?
If someone’s only income is subject to 2014-7, certain medicaid waiver payments, and is exlcuded as income, (as an adjustment to income on line 8) does it still count as earned income to contribute to a Roth IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2025-06-18 21:42
It should, per Sec 116 of the Secure Act.
That said, written IRS guidance is not real clear and there is some debate if such contributions can be other than non deductible TIRA contributions.