Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: LukeB546 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121185  
Subject: Re: IRA Contribution from Grant-Based Income Date: 1/13/2010 12:05 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement