Shelton
Apr 12 2002, 12:19 PM
Individual received W-2 wages of $5,000.
Individual is also a sole-proprietor. His tax filing shows self –employment loss.
Can he still make an IRA contribution even tough his tax return shows a loss?
papogi
Apr 12 2002, 12:49 PM
Yes. Self-employment net losses should not be subtracted from salaries/wages when determining total compensation. This individual may contribute to his/her IRA.