Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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IRS Publication 590-A states that compensation generally includes "self-employment income," "provided your personal services are a material income-producing factor," but not "[e]arnings and profits from property, such as rental income," or "[ i]ncome from a partnership for which you don’t provide services that are a material income-producing factor."
Last edited by snailderby on Wed Dec 11, 2019 9:11 am, edited 1 time in total.
OP still needs to have taxable "compensation" to do either a direct or backdoor Roth contribution.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
if I don't qualify for IRA then it's better just to invest in taxable account with extra money and stay in the 12% tax bracket with 0 tax on long capital gain. Is this logic better TIRA contribution ?
Last edited by carminered2019 on Tue Dec 10, 2019 10:32 pm, edited 1 time in total.
+1, I am uncertain for 2020 as well and decided to wait until December 1st to make my contribution because I'll have a better idea of if I'll be over the limit or not then compared to a January contribution.
My understanding is that the OP has no earned income. That would prevent them from making the initial tIRA contribution and the backdoor Roth maneuver in general. A Roth conversion might still be a possibility.boglenomics wrote: ↑Tue Dec 10, 2019 10:07 pm+1, I am uncertain for 2020 as well and decided to wait until December 1st to make my contribution because I'll have a better idea of if I'll be over the limit or not then compared to a January contribution.