Message Font: Serif | Sans-Serif
No. of Recommendations: 0
This year I opened a Roth IRA with $2000. The problem is, between being a full-time student most of the year, and taking time off for travel and other stuff the rest of the year, it looks like I won't have made $2000 in "earned income" by the end of the calendar year. I will have made plenty in capital gains, but (as I understand it) I'm not allowed to contribute any of that to my IRA.

What exactly is Uncle Sam going to do to me if I've contributed more to my IRA than I've made in "earned income"? To meet the "earned income" requirement, would I necessarily need to make that money before Dec. 31, or is it possible to count income made in the first quarter of 99 as having been earned in 98 for tax purposes? (This question isn't as weird as it sounds: I know that it would have been possible to contribute money to a Roth IRA in 97, for tax purposes, anytime during the first quarter of 98.)

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.