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Author: mph65k Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76422  
Subject: IRA Eligibility? Date: 12/3/2003 3:48 PM
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Hi,

Been reading the boards for a little bit but finally joined. So this is my first post.

My question is on the eligibility requirements for IRA contributions. I am currently unemployed (by choice) and have no earned income from an employer for 2003. I will have capital gains, dividend, interest income though. In reading the IRA info, it appears that I must have "earned income" to contribute to my IRA's. Just to be sure, does that mean I cannot contribute to my IRA's this year?

Mike
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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38042 of 76422
Subject: Re: IRA Eligibility? Date: 12/3/2003 6:24 PM
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In reading the IRA info, it appears that I must have "earned income" to contribute to my IRA's. Just to be sure, does that mean I cannot contribute to my IRA's this year?

That is correct. In simple terms, you need a W2 or a schedule C (with net income) to contribute to an IRA.

One way out - are you married? If so, and if your spouse is working, you can contribute to an IRA based on your spouse's earned income.

--Peter

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Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38046 of 76422
Subject: Re: IRA Eligibility? Date: 12/4/2003 10:37 AM
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Too bad you didn't have at least some income...not only would you have received an IRA deduction, you would have actually received a tax credit from the IRS. See:

http://www.phoenixwm.phl.com/html/taxlaw/page3.html

Nick

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Author: mph65k Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38051 of 76422
Subject: Re: IRA Eligibility? Date: 12/4/2003 12:09 PM
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It is too bad. The only income I have had this year is rental income, capital gains, dividends, etc. Maybe I should go find a holiday job for a couple of weeks.

Are there other options for someone in my position for putting some money away for retirement this year? I have my existing 401K and IRA. Just don't want to miss this year's opportunity to put some away.

Mike

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Author: mph65k Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38052 of 76422
Subject: Re: IRA Eligibility? Date: 12/4/2003 12:23 PM
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Nope, not married.

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