Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 272        August 20, 2004

The Book Kids Cost Retired ROTH When a Business Dies     IRS Grants Relief for Storm Survivors   Moolah Hula!   E-Mail  This Page To A Friend Your email: Your name: TO email:

Retired ROTH » From: Los Angeles, CA Dear TaxMama: Can you contribute to a Roth Ira if you are retired? From what I can understand the rules say that you can contribute if you have "earned taxable compensation" Are returns from investments considered "earned"? They certainly are taxable! Thank you Margo Hi Marge, Sure you can - IF If you're under age 70 1/2. AND If you're working and have earned income. Investments certainly ARE taxable. But they are not considered 'earned'. Earned means 'by the sweat of your brow'. It means income from a job or business. Even having rental income doesn't count as earned income - though, if those guys in Congress ever had to manage their own rental property, they would know what EARNED really is. Sorry Margo. If all your income comes from investments ... nope, no IRA contribution. Now, if you did a little freelance or temporary work, and earned a paycheck for $3,000 a year - not only could you fund a ROTH, you'd have the extra money to fund it with. And you might even have a good time and meet new people! Have fun! Best wishes, Eva Rosenberg Your TaxMama

TaxMama's Other Sites TaxMama's Secrets The Help Desk PhotoMasterpieces I-Laugh

Library of Congress -  ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg

Subscribe | Ask TaxMama ~ Send Her Your Questions | Site Search Home | This Week's Issue | Articles by TaxMama | For Tax Pros Investment Secrets | IRS News | Smart Tax Moves | Critical Dates Using Money Wisely | Money Funnies & Inspiration | Because We Care About TaxMama | Our Privacy Policy | Legalese and Disclaimer | Press Page

Site design by Serenata Design.