0
You must have earned income for the year in question, equal to or above the amount to be contributed for that year.
However, the actual source of the income does not have to be the earned income itself.
For example, it could be part of an inheritance or from capitol gains.
If you use a Tax Preparation Program, such as Turbo Tax, the program has a module that will calculate whether or not you qualify to contribute to a Roth or Traditional IRA in any given year, as well as the maximum you may contribute. This calculation takes place as part of the "Final Audit" phase at the end of the process.
Turbo Tax also compares a Roth contribution vs. a Traditional IRA contribution for the year, based on your individual situation based on the information you input while preparing your return.
What else can I help you with?
Do I need earned income in order to contribute to an HSA?
Yes, you need earned income in order to contribute to an HSA (Health Savings Account).
Do you need earned income in order to contribute to an HSA?
Yes, you need earned income in order to contribute to an HSA (Health Savings Account).
How much to you have to earn in order to contribute to Roth IRA?
You need to have taxable income at least equal to the amount you contribute to your Roth IRA. If you contribute $5,000, but have only $4,000 in taxable income, you need to pay taxes on $1,000 excess contribution.
How old do you have to be to have a self directed Roth ira?
You need to be over the age of 59 to obtain a self directed roth ira. If you fall into that age limit and within the guidelines then you can apply for one. Here is some information:http://www.trustetc.com/new/types-of-retirement-plans/roth-ira/
Can I open a Roth IRA if I'm 71?
Yes, you can! As long as you have earned income and don't earn more than the maximum modified adjusted gross income limit, you can contribute to a Roth IRA. Roth IRAs don't carry the same minimum required distribution rule that traditional IRAs do so you can let the account grow indefinitely if you choose. In order to withdraw earnings tax-free, you'll just need to make sure you're over the age of 59 1/2 (which you will be) and the account is open at least five years.
Can you use your VA disability compensation to qualify for a Roth IRA?
You qualify for a Roth IRA if you have qualifying income. Being disabled is not the factor that determines eligibility. You need to speak with a tax professional to determine if your income qualifies you for a Roth account. You can read more about Roth IRA accounts at the link provided below.
I need more information or advice about IRA tax deductible.?
There is no deduction for a Roth IRA. The advantage is given when you take money out of he roth after retirement. No tax is paid on the interest earned on the roth IRA.
I earned $945.00 working for my landlord and I need to know if I can file income taxes on this?
Yes you can file income taxes on $945.00 that you earned.
Do I qualify for an IRA?
To qualify for an Individual Retirement Account (IRA), you generally need to have earned income from a job or self-employment. There are also income limits for contributing to a Roth IRA. It's best to consult with a financial advisor or tax professional to determine your eligibility based on your specific circumstances.
How old do you need to be to be eligible for earned income credit?
25
Do you need to file an income tax return if you earned 5489.86?
Yes this is very possible. The type of earned income your filing status and even a possible refund of any withheld income taxes.
Roth IRA Basic Rules?
A Roth IRA has the same rules as a traditional IRA with a few notable exceptions. Contributions to a Roth IRA are not tax-deductible as contributions to a traditional IRA. A person can only contribute up to a certain amount to the IRA each year and there is a maximum income limit. If a person earns more than the limit, she can contribute to a traditional IRA but not the RothContribution LimitsIf a person has an adjusted gross income that is less than $122,000 in 2011, she can contribute up to $5,000 to a Roth IRA. People who are married and file jointly can earn up to $177,000 in 2011 and still contribute to a Roth IRA. She can only contribute money she earns during the year. For example, if her income is $3,500, she can only contribute $3,500 to her IRA. If a person is over age 50, she contribute an extra $1,000 to her IRA each year, for a total of $6,000.The $5,000 limit is the total combined for all the IRAs a person may have. For example, if someone has a Roth and traditional IRA, she may only contribute up to $5,000 total to the accounts, not $5,000 to each account. Married couples can contribute $5,000 each.TaxesUnlike a traditional IRA, the contributions to a Roth IRA are no tax-deductible in the year they are contributed. This has several benefits. When it is time to withdraw the money from a traditional IRA, a person will have to pay tax on the earnings and on the original amount. When it is time to take a withdrawal from a Roth IRA, no taxes are due on the money, for both original contributions and any earnings. Not owing taxes in retirement is beneficial if a person expects that they will be in a higher tax bracket during their retirement years.Other RulesPeople usually need to wait until they are age 59 1/2 before they can withdraw from a Roth IRA. There are a number of exceptions to this rule. For example, a person can use the money in an IRA to purchase their first home. Unlike traditional IRAs, a person can leave the money in the account indefinitely and does not need to begin taking distributions at age 70 1/2.
