Roth IRA contribution with "no earned income"

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Roth IRA contribution with "no earned income"

Postby Gettingrich » Thu Feb 14, 2013 8:47 am

Ok, so
Last edited by Gettingrich on Mon Mar 10, 2014 1:06 am, edited 1 time in total.
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Re: Roth IRA contribution with "no earned income"

Postby Viking65 » Thu Feb 14, 2013 9:27 am

Does this mean I'm not allowed to contribute, because I don't have any "earned income" ?
- Correct
Is there anyway around this,
- Not legally, that I am aware of
or do I have to wait until next year, when I'll be filing as self employed?
- I don't know how being self-employed affects your eligibility to contribute to a Roth. Others on the forum will.
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Re: Roth IRA contribution with "no earned income"

Postby sscritic » Thu Feb 14, 2013 9:39 am

Viking65 wrote: I don't know how being self-employed affects your eligibility to contribute to a Roth. Others on the forum will.

Google knows.
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Re: Roth IRA contribution with "no earned income"

Postby hq38sq43 » Thu Feb 14, 2013 11:15 am

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.


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.

Best regards,
Harry at Bradenton
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Re: Roth IRA contribution with "no earned income"

Postby Bogle101 » Thu Feb 14, 2013 11:37 am

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.


That is impressive, I've seen how difficult line shopping can be. Did you do all sports or just NFL?
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Re: Roth IRA contribution with "no earned income"

Postby Gettingrich » Thu Feb 14, 2013 12:05 pm

hq38sq43 wrote:
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.


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.

Best regards,
Last edited by Gettingrich on Mon Mar 10, 2014 1:06 am, edited 2 times in total.
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Re: Roth IRA contribution with "no earned income"

Postby Gettingrich » Thu Feb 14, 2013 12:09 pm

Bogle101 wrote:
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.


That is impressive, I've seen how difficult line shopping can be. Did you do all sports or just NFL?
Last edited by Gettingrich on Mon Mar 10, 2014 1:07 am, edited 1 time in total.
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Re: Roth IRA contribution with "no earned income"

Postby retiredjg » Thu Feb 14, 2013 12:19 pm

Any possibility you have a spouse with earned income?
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