IRA contributions from executor fees

[Theresa Lynn]

Fees earned as the administrator of an estate (a personal representative, executor, etc.) are taxable and on that basis appear that they can be taken into account in determining the maximum IRA contribution that an individual may make to his IRA for the year. They also are earned for services performed. However, they are not employee wages and although self-employment income, are not subject to SECA. So they don't fit squarely within the definitions of self-employment income through 219 as well. May an administrator consider these earnings to reach the $3000 and catch up contribution limits?

Thanks

Theresa Lynn

[JAMES PATRICK]

My opinion,just that, is that if you do this as a business or trade and pay S/E taxes than it is OK for IRA purposes. If a one time deal, no S/E tax, no IRA.