Payments described in Notice 2014-7 – earned income for purposes of IRA contribution
I received payments described in Notice 2014-7 that are treated as difficulty of care payments under Section 131. May I choose to include these payments in earned income for purposes of the IRA contribution?
The payments were excluded from gross income on my tax return.
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-28 19:37
Yes, you can per Sec 116 of the Secure Act. See p 15 of IRS Pub 590 A.