EWA Financial Services - Decatur Nate Russell: I am not pleased with the services I recieved from this business, Although I am for black business and the person was very nice , I will not return to do services with EWA in the future. I had a professional look over my taxes and I am receiving a return from federal government. I was told by the business owner that my withdrawl was considered earned income from my IRA. Also, I researched what she said and it was inaccurate. Withdrawls from IRA /retirement accounts are not considered earned income by the IRS. On my tax return the prepararer from this business added the IRA withdrawl as earned income. Here is the result of my reasearch:
Does IRA withdrawal count as earned income?
AI Overview
No, IRA withdrawals are generally considered unearned income and not earned income, meaning they are not the result of work or active participation in a business, but rather distributions from a retirement account.
Heres a more detailed explanation:
Earned income
refers to money received from employment, self-employment, or active business participation.
Unearned income
includes income from sources like retirement accounts (IRAs, 401(k)s), pensions, annuities, interest, and dividends.
