Can anyone who receives income from an S Corp (reported on a K1)make a deductible contribution to a Traditional IRA the same as if they received their income on a W-2?
- posted
10 years ago
Can anyone who receives income from an S Corp (reported on a K1)make a deductible contribution to a Traditional IRA the same as if they received their income on a W-2?
You must have taxable compensation to make a contribution. Taxable compensation includes the amount in Box 1 of your W-2 (reflected on Line
7 of the 1040) or your business income on Form 1040 Lines 12 & 18 less any amounts on Lines 27 & 28 (1/2 SE tax deduction & deductions to a retirement plan) or alimony or nontaxable combat pay.
No. See the list in Alan's post.
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