Income qualification for IRA?

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Income qualification for IRA?

I wanted to know if I can contribute to a traditional or Roth IRA if I had no wages from a job (W-2) but I did have taxable investment and rental property income.

2007-10-05 13:57:16 · 2 answers · asked by mercanto 1 in Business & Finance ➔ Personal Finance

2 answers

No

In order to contribute to an IRA you must have "earned income". Earned Income is defined as wages and/or self-employment income. Neither investment income nor rental income is considered earned income.

2007-10-05 16:11:06 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋

Sorry, but you need EARNED income in order to contribute to an IRA. Workers Compensation and Unemployment Compensation are not earned income. Only wages from employment or self-employment income count as earned income.

2016-05-17 06:48:29 · answer #2 · answered by ? 3 · 0⤊ 0⤋