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Financial Planning / Tax Strategies
|Subject: Re: IRA Contribution from Grant-Based Income||Date: 1/13/2010 12:05 AM|
|Author: LukeB546||Number: 108478 of 124817|
i'm looking at IRS publication 590, which is all about IRAs.
the stuff about contributions is on page 8.
first of all, there is no mention of income from taxable grants in the whole document, and there are only restrictions placed on scholarships/fellowships, where it states that income from those sources can only be contributed to an IRA if it is located in box 1 of a W-2 form. so, more specifically to my situation, i gather that income from a taxable grant (or something equivalent) is certainly not excluded. but, it isn't explicitly allowed, insomuch as that it's not listed as a valid source of compensation. (this is all from page 8...)
but, on the very bottom of page 56 it says that Roth IRA contributions don't have to be reported on the return. but then, there is information about excessive contributions on page 62.
so, i'm not sure what to think. how is the extent of the excess being assessed if it isn't reported on the return?
hmm... the total income used in determining your allowable IRA contribution seems to just get carried down from the "adjusted gross income" line of form 1040, where all forms of income get combined anyway...
if anyone can show me the big picture here, i'd be truly grateful!
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