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.
According to the local SSI office any retirement plan that qualifies with IRS rule 209 (xxx) is not counted as earned income.
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.
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.
Unemployment Compensation is considered non-taxable income for the Earned Income Tax.
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.
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
No
Severance pay usually is considered ordinary taxable income. If the income is taxable you can count it toward making an IRA contribution.
Yes, deferred revenue is a current liability. It means that the revenue has yet to be earned, therefore it is still owed to the business or company.
NO workers compensation for an on the job injury is not qualified taxable earned income for the earned income credit.
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.
no