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Greetings, Derek, and welcome. You asked:

<<I am retired and my sole income sources are social security and my company pension. In connection with the latter my ex-employer still pays for life insurance for me. This generates "imputed income" on which I have to pay income tax. Ths being the case can I open a Roth (or even a conventional) IRA account in the amount of the imputeD income?
If the answer is no, why not? Apparently I have to enter it on my tax return as Wages, etc.>>

The IRS treats as compensation any amount properly shown in Box 1 of your Form W-2 provided that amount is reduced by any amount properly shown as distributions from nonqualified retirement plans in Box 11. If you meet that criteria, then that income is appropriate upon which to base a contribution to an IRA. For details, see IRS Publication 590 (Individual Retirement Arrnagements) available at

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