SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-tax-ira-compensation

To put money in an IRA, you generally need what?

Taxable compensation, meaning what you earn from working.

Start playing free

  1. Taxable compensation from working ✔
  2. A college degree
  3. A parent's signature

Why: Compensation includes wages, salaries, tips and bonuses. A summer job counts, while birthday money does not.

Huh, didn't know that: Self-employed people count their net earnings from their business.

The dad joke
Ever wonder why they call it a Form 1040? For every $50 you earn, you get $10, and the IRS gets $40.
Like this card?
Play the game

References

Answer: Taxable compensation from working. Compensation includes wages, salaries, tips and bonuses. A summer job counts, while birthday money does not.

  1. IRS Publication 590-A: IRA contributions www.irs.gov/publications/p590a
    Generally, compensation is what you earn from working.
    Checked 2026-10-10.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

MoneyWhich of these counts as earned income?MoneyWhat is a minimum wage?MoneyWith a Roth IRA, when do you pay tax on the money you put in?

That's stuff everyone should know.