Thank you. I have watched several other videos about Roth contributions and the Backdoor Roth. Yours is the only one that was clear about earned income. I have plenty of income, just none of is earned. I was hoping to use RMDs to fund a Roth, but clearly that's not an option for me.
I can't seem to find any info on what the penalty is if you contribute to your ROTH IRA with no income. For instance, in Jan of 2021 you contribute the max amount to your IRA assuming you'll make enough through out the year to qualify. But instead you lost your job and have no income for the year. What's the penalty if you don't make any or enough taxable income. Can you just withdrawal the amount you deposited before the end of the year to avoid a penalty?
What a good video. Quick question, in January 2024 I made $3000 but no longer work. Can I contribute to my Roth up to the $3000 even if it’s months later? Also if I take on a gig job like Uber later this year can I contribute that amount into my Roth? I think I can because that’s probably earned income. Thank you so much for your response.
Great videos about this Topic!! I have made numerous Excessive Contributions to my Roth and I was researching this and looking into removing them. I just talked with a CPA and he told me that there is a 3 year Statue of Limitations on Excessive Contributions from the filing Date for the IRS to catch it and notify you. In my research I did not see any mention of that. He said not to bother following up on all the paperwork, Forms and Taxable Gain worksheets because most of my Excessive Contributions were older than 3 years ago. Is he Correct about the 3 year Statue of Limitations???
Hello, I've got a problem, ugh. I won a court settlement ftom an injury and received money which was tax free. I hired a financial adviser ( works for Chase). Initially I had him open a ROTH for me with $7000( I'm 65), The next year I had him contribute another $7000 into the ROTH. This year when I asked him to do the same he realized YOU CAN'T CONTRIBUTE UNEARNED INCOME INTO A ROTH. Now, he honestly just doesn't know what to do about it. I'm thinking, "Just close out the Roth" but I'm assuming that it can be complicated because I may have to pay taxes on the entire amount. Please help😟
Thanks for explaining. I see that "taxable non-tuition fellowship and stipend payments" are allowed to be contributed, does that mean undergrad scholarships that exceed your tuition (and therefore taxed) can be contributed?
Thank you for this video, it was very helpful.. so if I'm understanding this correctly, I cannot contribute to a roth ira with donations I receive in exchange for services? Im unemployed in a traditional sense, and I make my income exchanging my services for donations. I wouldn't be able to use this unless it's something I include in my taxes? Thanks!
PLEASE respond to this comment. I am a service connected veteran. I have compensation due to being injured in the military. I make 80k a year and its unearned income. I want to invest into a ROTH ira. Is this possible and if so.....how can I do it? I have about 1600.00 a month I can invest and 1,000.00 a month for savings. Debt is about 13k in credit cards. 2 paid off homes, vehicles paid off. Just want to do something with this monthly income. I want to have my money make money as I get into the golden years. Im 47
Hi, I work and my husband is blind on disability. I have a 401k and a Roth that we contribute to. He has a Trditional IRA that we contribute to. Is it OK to open a Roth in his name and we contribute to even though his only income is Social Security Disability?
If I am in the process of registering my UBER driving income as an LLC and getting my EIN while transferring my previous employment 401k to a Roth IRA does that get me targeted for suspicion of tax evasion? I just don't want to put my business on the Roth account until the LLC status is complete.
A Roth IRA is an Individual Retirement Account, it's yours. You can keep it forever unless you decide to close it yourself. The only thing you can't do is make contributions if you have no earned income.
Im stay home mom now , I make mistake by take out cash from my 403b and get tax 20% I believe ,I also just open ROTh IRA , haven’t receive the check yet but my question do I still have to pay income tax next year , if I receive the money from my 403b can i just transfer all from my bank account to ROTH IRA , thank you so much if you can answer my questions.
Great video Travis. Can you explain briefly the spousal Roth ira term? Its basically seperate Roth IRAs owned by each spouse but the one spouse working with income each can contribute separately to the their own accounts correct?
I have looked at several of your videos. I am trying to figure out how much my daughter (relatively low income) can contribute to a Roth IRA--not overcontribution, limits etc. Just how much can she contribute?
The amount which you contribute is related to income. I get there is an upper limit of income. What is the actual amount of income which determines how much you can contribute (not maximum etc--just what is the calculation on how much you can contribute