Your Tax Questions Answered
Roth IRA contribution
Kiplinger editorial director Kevin McCormally and fellow tax experts Peter Blank and Mary Beth Franklin tackle your most pressing tax challenges.
May 1, 2009
QUESTION: May I contribute to Roth IRA when my only income is from SSA and stocks?
KEVIN ANSWERS: No.
You must have compensation from a job or self employment to contribute to an IRA, Roth or traditional. Social security benefits and investment income do not count as compensation.
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Reader Comments (9)
Posted by: hal at 10/30/2009 09:14:58 PM
I have a question..its a bit long so I do apologize for that, but I cannot get an answer from the IRS or one that make me confident about my tax preparer. I have an income combined income of 146,000.00 I am going to take some funds from my 457 account, I know about the penalty . The initial amount is 50000.00 (50K) The funds manager will automatically withhold 20% that means I will receive a check for 40000.00 (40K) There is also another 10% penalty I believe for Fed tax for a total of 30% Which should leave me with about 35000.00 (35K) Now ....will I be taxed as in income of 146000 + 50000 ....or 146000 + 35000 (since I would be paying the 30 % penalty) The bottom line is I need an idea of is come next April 15 2010 when the preparer looks at me and say " and THIS is what you need to send to the IRS" I am in NY....any help would be greatly appreciated as this is being done to help an ailing parent, and more surprises I do not need. Please keep in mind 146000.00 is income.....50000.00 is a 457 early withdrawal. Thank you for your time
Posted by: Jim Kasper at 10/31/2009 04:11:50 PM
Is the doctor fee that is NOT paid by insurance or the patient, tax deductible as a loss?
Posted by: CARLOS A MEJIA at 11/30/2009 02:13:33 PM
I withdrew $40,000 fron IRA August of 2009,I am 45 years old, I read this morning that a moratorium or an extension was given to return the full amount within 365 days to avoid penalties and taxes, is that correct, please?...thank you
Posted by: yockey,mary at 12/21/2009 07:33:31 PM
Can money from a tax-free gift be used to make a Roth IRA contribution?
Posted by: James Metler at 01/04/2010 03:10:52 PM
I am 77 years old as of 11/21/2009. What is my life-expectancy divisor to be used in finding my RMD from my IRA. Thank you.
Posted by: Rose at 01/08/2010 10:35:19 PM
I will be 70 this year. What will be my life expectancy that I use to calculate my RMD ? Is there a chart to TO figure this yearly ? Where can I find such a ccart?
Posted by: doug at 01/13/2010 09:05:55 PM
i am age 75. please advise of my rmd divisor based on dob 03/09/1935. thanks, doug
Posted by: Anie at 01/13/2010 09:49:32 PM
Rose, This should answer your questions: www.rothirarules.net They have a ton of information on Roth IRA.
Posted by: Muneer at 09/10/2010 01:10:13 AM
Rose, Roth IRAs are not subject to required minimum distributions (RMD)s. Which IRA accounts impose the Required Minimum Distribution (RMD) rule? Traditional, Rollover, SEP and SIMPLE IRAs include this ruling. Roth IRA does not. For 70 years old, the maximum required distribution period is 27.4 years - Source: www.definerothira.com