Roth IRA contribution with "no earned income"
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Roth IRA contribution with "no earned income"
Ok, so
Last edited by Gettingrich on Mon Mar 10, 2014 12:06 am, edited 1 time in total.
Re: Roth IRA contribution with "no earned income"
- CorrectDoes this mean I'm not allowed to contribute, because I don't have any "earned income" ?
- Not legally, that I am aware ofIs there anyway around this,
- I don't know how being self-employed affects your eligibility to contribute to a Roth. Others on the forum will.or do I have to wait until next year, when I'll be filing as self employed?
Re: Roth IRA contribution with "no earned income"
Google knows.Viking65 wrote: I don't know how being self-employed affects your eligibility to contribute to a Roth. Others on the forum will.
Re: Roth IRA contribution with "no earned income"
It might be well for you to consult a tax professional as to whether you should report income and claim expenses "this year" (presumably 2012) as a professional gambler on Schedule C. Net Schedule C income is "earned income" that would qualify you to invest in an IRA(regular or Roth). It is probably too late for a SEP, Keogh, or individual 401k, but you might consider those possibilities for next year. You could, of course, google "professional gambler IRS" and educate yourself. Lots of good stuff on this on Google.Gettingrich wrote:Ok, so all of my income came from sports betting this year. I entered all my wins and losses under "Gambling Winnings" in Turbo Tax. Then, I started fooling around with the Roth IRA deductions and credit part, because I was planning on contributing the max for the 2012 year here in a couple weeks. After I input all the info, it comes out saying: "Your Roth Contribution Was Too High. Roth IRAs offer some great benefits, but they have restrictions on how much you can contribute. You contributed $5,000 to a Roth, but your earned income was only zero. Roth contributions can't be more than earned income, which means you have an excess contribution of $5,000."
Does this mean I'm not allowed to contribute, because I don't have any "earned income" ? Is there anyway around this, or do I have to wait until next year, when I'll be filing as self employed?
Thanks for your help.
Best regards,
Harry at Bradenton
Re: Roth IRA contribution with "no earned income"
That is impressive, I've seen how difficult line shopping can be. Did you do all sports or just NFL?Gettingrich wrote:Ok, so all of my income came from sports betting this year. I entered all my wins and losses under "Gambling Winnings" in Turbo Tax. Then, I started fooling around with the Roth IRA deductions and credit part, because I was planning on contributing the max for the 2012 year here in a couple weeks. After I input all the info, it comes out saying: "Your Roth Contribution Was Too High. Roth IRAs offer some great benefits, but they have restrictions on how much you can contribute. You contributed $5,000 to a Roth, but your earned income was only zero. Roth contributions can't be more than earned income, which means you have an excess contribution of $5,000."
Does this mean I'm not allowed to contribute, because I don't have any "earned income" ? Is there anyway around this, or do I have to wait until next year, when I'll be filing as self employed?
Thanks for your help.
40% Extended Market | 40% S&P 500 | 10% REIT | 5% State Muni Bond | 5% Cash
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- Posts: 8
- Joined: Fri Feb 08, 2013 2:58 pm
Re: Roth IRA contribution with "no earned income"
hq38sq43 wrote:It might be well for you to consult a tax professional as to whether you should report income and claim expenses "this year" (presumably 2012) as a professional gambler on Schedule C. Net Schedule C income is "earned income" that would qualify you to invest in an IRA(regular or Roth). It is probably too late for a SEP, Keogh, or individual 401k, but you might consider those possibilities for next year. You could, of course, google "professional gambler IRS" and educate yourself. Lots of good stuff on this on Google.Gettingrich wrote:Ok, so all of my income came from sports betting this year. I entered all my wins and losses under "Gambling Winnings" in Turbo Tax. Then, I started fooling around with the Roth IRA deductions and credit part, because I was planning on contributing the max for the 2012 year here in a couple weeks. After I input all the info, it comes out saying: "Your Roth Contribution Was Too High. Roth IRAs offer some great benefits, but they have restrictions on how much you can contribute. You contributed $5,000 to a Roth, but your earned income was only zero. Roth contributions can't be more than earned income, which means you have an excess contribution of $5,000."
Does this mean I'm not allowed to contribute, because I don't have any "earned income" ? Is there anyway around this, or do I have to wait until next year, when I'll be filing as self employed?
Thanks for your help.
Best regards,
Last edited by Gettingrich on Mon Mar 10, 2014 12:06 am, edited 2 times in total.
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- Posts: 8
- Joined: Fri Feb 08, 2013 2:58 pm
Re: Roth IRA contribution with "no earned income"
Bogle101 wrote:That is impressive, I've seen how difficult line shopping can be. Did you do all sports or just NFL?Gettingrich wrote:Ok, so all of my income came from sports betting this year. I entered all my wins and losses under "Gambling Winnings" in Turbo Tax. Then, I started fooling around with the Roth IRA deductions and credit part, because I was planning on contributing the max for the 2012 year here in a couple weeks. After I input all the info, it comes out saying: "Your Roth Contribution Was Too High. Roth IRAs offer some great benefits, but they have restrictions on how much you can contribute. You contributed $5,000 to a Roth, but your earned income was only zero. Roth contributions can't be more than earned income, which means you have an excess contribution of $5,000."
Does this mean I'm not allowed to contribute, because I don't have any "earned income" ? Is there anyway around this, or do I have to wait until next year, when I'll be filing as self employed?
Thanks for your help.
Last edited by Gettingrich on Mon Mar 10, 2014 12:07 am, edited 1 time in total.
Re: Roth IRA contribution with "no earned income"
Any possibility you have a spouse with earned income?
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