A person has two W2 documents with wages reported in box 1. The first W2 has wages from P/T work. The second W2 reports taxable wages in box 1 (subject to fed, state, and FICA taxes) for imputed income from company paid group life insurance. Is the second W2 with box 1 wages for imputed income considered compensation eligible for making a traditional IRA contribution? Would need the compensation from both W2s to make the max IRA contribution. Thanks, RGT
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FEDUKE404 - Thanks for your reply. The person is retired and the 1st W2 was for P/T income and the second W2 was from the former employer that represents imputed income from company paid life insurance provided post retirement. Both W2 documents do not show the employee as covered under a retirement plan.
You are correct, the tax software is allowing the IRA contribution. Thanks
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