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Is deferred compensation considered earned income for IRA contribution limits?
Wiki User
∙ 12y ago
Unfortunately Deferred Compensation is not considered earned income for IRA deduction limits. See IRS publication 590, page 7, table 1-1. Here it specifically has Def Comp plans listed in the column of income NOT included when figuring your IRA deduction.
Wiki User
∙ 12y ago
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Is deferred compensation considered earned income for social security earning limits?
According to the local SSI office any retirement plan that qualifies with IRS rule 209 (xxx) is not counted as earned income.
What is the use of compensation plans?
A compensation plan is a form of deferred compensation, which is income paid to an employee at a specified date after it was earned. Examples include pension plans, 401k retirement accounts, and stock options.
What is the usefulness of plan?
A compensation plan is a form of deferred compensation, which is income paid to an employee at a specified date after it was earned. Examples include pension plans, 401k retirement accounts, and stock options.
Is unemployment compensation taxable in the city of Pittsburgh Pa?
Unemployment Compensation is considered non-taxable income for the Earned Income Tax.
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Earnings within an IRA are not taxable in the year earned. A traditional IRA contributions are possibly tax deductible in the year made and are tax deferred until they are taken out of the IRA.
Is your IRA contribution limited to your earned income?
Yes if your earned income is less than the maximum contribution limit for the tax year in question.General LimitFor 2009, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts:$5,000 ($6,000 if you are age 50 or older), orYour taxable compensation (defined earlier) for the year.THANKS for the answer--Mike
Is workman's compensation taxed as earned income?
No
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Severance pay usually is considered ordinary taxable income. If the income is taxable you can count it toward making an IRA contribution.
Is deferred revenue a current liability?
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Can you get earned income back if you are on workerscomp?
NO workers compensation for an on the job injury is not qualified taxable earned income for the earned income credit.
How divorced man on disability can contribute to Roth IRA?
Traditional and Roth IRA contributions can only be made with earned compensation, (ie: W2 income, bonuses, commissions, etc). A Spousal IRA contribution may also be an option.
Is unemployment compensation earned income when receiving social security benefits?
no
