Charitable Remainder Beneficiary Payments are taxable. Are they earned income?

No. Just because it’s taxable doesn’t mean that it’s compensation for work, which is what is required to make IRA contributions. From IRS Pub 590-A p590a.pdf (irs.gov)

Payments from a Charitable Remainder Trust will be reported to you on a Beneficiary Schedule K-1 (Form 1041) f1041sk1.pdf (irs.gov) which is different than a Partnership K-1 (Form 1065) f1065sk1.pdf (irs.gov) where compensation income may be reported, since it allows for reporting of self-employment income and partnership income where you are providing services that are a material income producing factor.

None of the income types on the Beneficiary’s K-1 are considered to be compensation, as defined in the list of compensation qualified for IRAs, since you aren’t being compensated for working.

AJ

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