Withdrawals from a traditional IRA are considered taxable income. You do not have to pay tax on withdrawals from a Roth IRA.
NO. Pension income would NOT be a QUALIFIED EARNED INCOME for contributions to a IRA account.
Severance pay usually is considered ordinary taxable income. If the income is taxable you can count it toward making an IRA contribution.
Yes
Yes if your earned income is less than the maximum contribution limit for the tax year in question.General LimitFor 2009, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts:$5,000 ($6,000 if you are age 50 or older), orYour taxable compensation (defined earlier) for the year.THANKS for the answer--Mike
On a standar IRA, Yes (you didn't pay tax on the $ contributed or as it grew). On a Roth IRA, (where you paid the tax on the income before contribution), No.
NO. Pension income would NOT be a QUALIFIED EARNED INCOME for contributions to a IRA account.
Sure, why not. It is earned income.
Yes, as long as the individual has earned income, they can contribute to a Roth IRA regardless of their age. There are no age restrictions for contributing to a Roth IRA if you have earned income.
IRA and and any other income that had been earned in that year will be sent to the government. You will have to claim any income in your income tax.
Definitions: Earned income - is received from services performed. For example, wages, commisions, tips, and business income. Unearned income - is generally income that the does meet the definition of earned income. Examples include interest, dividends, rents, and royalties. Pensions and IRA distributions would fall into this category.
Yes, anybody (US citizen) with earned income.
You can contribute to an IRA if you are not yet 70 1/2 and have some source of W-2 / 1099 self employment income. Social security payments are NOT considered income that can be used to contribute to an IRA.
IRA account can be opened at any age as long as the person/kid has earned income.
Severance pay usually is considered ordinary taxable income. If the income is taxable you can count it toward making an IRA contribution.
Yes
Yes, a 71-year-old can contribute to a traditional IRA as long as they have earned income. They are also eligible to contribute to a Roth IRA regardless of age if they meet income requirements.
Unfortunately Deferred Compensation is not considered earned income for IRA deduction limits. See IRS publication 590, page 7, table 1-1. Here it specifically has Def Comp plans listed in the column of income NOT included when figuring your IRA deduction.