UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: EtanChatlynne One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Retroactive IRA inputs Date: 8/22/1999 9:42 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings,

One of my Foolish relatives invested money to pay for my college. Having chosen to go to a state school, a bit of the money was left over. Thus began my investing career.

Now I am at graduate school getting paid a few cents an hour to work 80 hours a week--perfect for setting up some DRiPs. Unfortunately, I've learned that DRiPs are no good with IRAs. So, while DRiPping, I would still like to take advantage of the fact that I am making over $2000 a year. At the end of the following years, can I claim $2000 of what I have left over from my education fund even though I did not technically "earn" it?

Thanks.

-etan
Print the post Back To Top
Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13342 of 75383
Subject: Re: Retroactive IRA inputs Date: 8/22/1999 10:15 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
One of my Foolish relatives invested money to pay for my college. Having chosen to go to a state school, a bit of the money was left over. Thus began my investing career.

Now I am at graduate school getting paid a few cents an hour to work 80 hours a week--perfect for setting up some DRiPs. Unfortunately, I've learned that DRiPs are no good with IRAs. So, while DRiPping, I would still like to take advantage of the fact that I am making over $2000 a year. At the end of the following years, can I claim $2000 of what I have left over from my education fund even though I did not technically "earn" it?

Thanks.



You must have 2,000 of earned income to contribute 2000 to an IRA. The answer is no.

I do not uses DRiP's, but I do not see why they would not work in an IRA. I could see a problem in finding a custodian/brocker to handle the account but I think E Trade and E Schwab would.

Print the post Back To Top
Author: medgoddess Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13347 of 75383
Subject: Re: Retroactive IRA inputs Date: 8/23/1999 8:16 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Did you fill out any forms before starting the TAship? I had to before mine & part of my TAship was "earned" and part was considered a scholarship, so I was able to contribute to my IRA. Check with your departmental secretary to get the details on yours. Hope this helps.
Kristi

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13363 of 75383
Subject: Re: Retroactive IRA inputs Date: 8/23/1999 2:04 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Time was when some regarded TAships as grants rather than earned income. In that case no income taxes were withheld and social security was not collected. There may still be options in this case, but once it is decided, you need to be consistent in the tax treatments of the income.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement