You can contribute to a Roth IRA next year if you have compensation from employment. If you have no compensation of your own but you are married and your spouse has compensation, you can make a spousal Roth IRA contribution using her compensation. In either case, your total income cannot exceed $178,000 for 2013 to make a full Roth IRA contribution.
I converted an IRA to a Roth IRA in December of 2010. I have to pay the final taxes on it this tax year.
I had wages of $23,000.00 this year and plan to make a $6,000.00 contribution this year into my Roth IRA. I am retired and this could be the last year that I have wages. I have heard that other income qualifies for contributions to a Roth IRA.
Is this income stock dividends? Is there any other income that qualifies as income, so I can make a contribution to my Roth IRA in future years?
Any help would be greatly appreciated.
You need compensation to make a Roth IRA contribution. Compensation includes wages, tips, and earned income from self-employment. Stock dividends are not considered compensation.
I have run across your articles on the web. I have a question that you may have answered previously. My wife is 57 and is the recipient of a beneficiary IRA worth about $100K from her step-mother, who was already taking distributions. My wife is now taking RMDs each year on her life expectancy. We moved it from her step-mom's custodian to our investment advisor's firm and retitled it properly.
It is currently in various mutual funds. Can she invest this into an annuity for purposes of gaining a fixed income and reducing stock market risk?
Yes. She can invest the inherited IRA money in an IRA annuity, which is sometimes called a qualified annuity. She will have to continue taking death distributions from that inherited IRA annuity