I retired early in 2019. I had 19,000 in gross pay. I had a HD Health plan all year. I am married. My employer contributed $700 to my HSA and I contributed $300 through payroll deduction. So my W2 wages will be 18,700. I also contributed $1,200 to a Roth 401k. Can I contribute $7000 to my Roth IRA, $7000 to my wife’s Roth IRA and the remaining $7000 to my HSA? Or, am I limited to a total of $17,500 (19,000 gross pay – 1,200 Roth 401k – 300 HSA payroll deduction) for these contributions. Earned Income is required for the IRA’s, but not the HSA. However, if I were to use payroll deductions for all of my HSA contributions, then my W2 wages would be reduced by this amount. Since I am contributing to the HSA on my own, does this no longer apply? (All number are rounded for easier math.)
Bottom Line: Do I need to reduce my wages that I can contribute to a Roth IRA by my Roth 401k and / or HSA contributions?
Table 1-1. in Publication 590 “Compensation for Purposes of an IRA” Doesn’t include …any amounts you exclude from income.
But you do not have to have earned income for an HSA, and Roth 401k contributions are not excluded from income.
For the real answer I would suggest re-posting your question in the retirement forum here and check for a reply by Alan S.
My guess is that you found the answer in Pub 590………so you exclude
$300 HSA payroll contribution. Since the Roth 401K contribution is not excluded from income and the additional HSA contributions are not coming from your paycheck, I don’t think you need to exclude them from available
Roth IRA contributions so you should have more than enough for your IRA contributions.