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Question

epo39b

SuperUser

Can executor fee be considered "earned income" for Roth IRA purposes?

I am Executor of a small estate. I am a non-professional executor (family member), and received a set fee specified in the Will. On my personal 1040, I will be reporting the fee under Line 21"Other Income" and not Sched. C. I understand no self-employment tax will be due, since this is a non-professional one-time only fee. My question is: Is this executor fee payment considered "earned income" which can be used to figure the allowable contribution limits for a Roth IRA? I don't know if the fact that I pay no SE tax on it and not using Sched. C.makes any difference. Thanks for info.

(Asked 01/11/08, Views 99)

Question has been solved by bwa

Answers (1)

bwa

SuperUser

No. The fact that no self-employment tax is due is a sure give-away that it is not earned income. If you were a professional executor or an attorney acting as an executor, it would be earned income.

(Posted 01/11/08)

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