Question - Modified Adjusted Gross Income

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SquawkIdent
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Question - Modified Adjusted Gross Income

Post by SquawkIdent » Fri Jul 05, 2019 11:48 am

A question about a direct investment into a Roth IRA instead of doing the backdoor.

I see the IRA income limitations. I cannot use a pension payout funds as earned income to invest in the Roth but I need actual income that I earned at a paying job.

But when figuring out my adjusted gross income amounts to see if I earn too much, the pension income would be included in that figure? After extensive research I believe so but I want to make sure as it seems very strange to not include it in one but include it in the other.

Thanks. :sharebeer

sport
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Re: Question - Modified Adjusted Gross Income

Post by sport » Fri Jul 05, 2019 12:14 pm

You have it right. Earned income is required to make contributions. Gross income is used to determine eligibility. Those are two different things.

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SquawkIdent
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Re: Question - Modified Adjusted Gross Income

Post by SquawkIdent » Fri Jul 05, 2019 12:33 pm

sport wrote:
Fri Jul 05, 2019 12:14 pm
You have it right. Earned income is required to make contributions. Gross income is used to determine eligibility. Those are two different things.
Thank you.

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