<p>Can a student make contributions to a Roth IRA based on scholarship money that is reported as income for Federal Taxes? Just wondering, as they are being taxed on that amount, but am unsure if scholarships pass the test of being earned income.</p>
<p>Just found out my own answer, scholarships and fellowships can only be considered income for IRA’s if the amount appears in Box 1 of the W-2. Since most scholarships are not reported as work and thus don’t generate a W-2, it’s a no go.</p>