IRA rollovers Roth
I rolled $26000 from a traditional to a Roth. I paid taxes on the distribution. Can I still contribute to Roth ($7000) from earnings this year?
Terry Says
If you have EARNED income (from work, not from a rollover or interest or dividend income or a pension or SS), then you can contribute to a Roth for 2021 — up to $6,000 under age 50, and $7000 if 50 or older. BUT, you must meet this maximum earnings test for 2021:
In 2021, you can contribute the full amount if you are single and your MAGI is less than $125,000 (or $198,000, if you are married and filing jointly). If you make more than that, the maximum contribution decreases as your MAGI goes up. If your MAGI is higher than $140,000 (or $208,000, for married couples filing together) you cannot contribute at all.
