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While employed I placed part of my salary in a deferred income account with my employer. I am now retired, and have started receiving annual payments from this deferred income account. These payments of deferred income will continue for the next 10 years.

I received a W-2 statement from my former employer, and taxes were withheld from the payment. Does this payment of deferred income qualify me for annual IRA contributions? (I have no other "earned" income.)

It sounds to me like your former employer is reporting incorrectly, but when life hands you a lemon.... The IRS has said that it will not question the use of amounts shown in box 1 of the W-2 as the basis for IRA contributions. I say go ahead and do it.

Phil Marti
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