Roth IRA contribution — what’s earned income?
I am the owner of IL partnership with my children.
My income comes from property rentals, no salaries are paid but withdrawals are made of rental income. Can I and my partners contribute that income to a roth ira?
Terry Says
It depends on how the “distribution” is characterized. If it is a salary, then it is earned income. If it is a “return on investment” then it is NOT earned income — and thus you cannot make a ROTH IRA contribution based on that income. Check on how your accountants characterize that withdrawal.
