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This questions is for my dad, a Foolish investor, but he knows little or nothing about the Fool. I am a big time Fool, and here is the question: My dad will have no income next year being very retired and happy about it. He's 55 and he still wants to contribute to his Roth, but he knows that only earned income can be invested. If his wife is working, can he place $2000 of her money into his Roth? Can this earned income that must be placed into the Roth be any type of income including investment income as long as it has already been taxed? Eagerly awaiting a Foolish answer,

DanDan
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danhornung: "This questions is for my dad, a Foolish investor, but he knows little or nothing about the Fool. I am a big time Fool, and here is the question:

My dad will have no income next year being very retired and happy about it. He's 55 and he still wants to contribute to his Roth, but he knows that only earned income can be invested. If his wife is working, can he place $2000 of her money into his Roth?"


I am no expert, and I am sure that the other posters will be around, but I beleive that the answer is yes, assuming that your mother earned more than $2000. Is your mother also placing money in her Roth? If yes, he earned income must exceed the total placed in both Roths (which is capped at $2000 each for your mother and your father).

"Can this earned income that must be placed into the Roth be any type of income including investment income as long as it has already been taxed?"

No, it can not be any kind of income, it must be earned income. I do not have the complete definition handy, but wages and salary are earned income, investment income is not earned income, IIRC.

Regards, JAFO
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Please forgive the serial posting, but I forgot to ask:

danhornung, would you by any chance have an uncle Paul?

Curious, JAFO
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This questions is for my dad, a Foolish investor, but he knows little or nothing about the Fool. I am a big time Fool, and here is the question: My dad will have no income next year being very retired and happy about it. He's 55 and he still wants to contribute to his Roth, but he knows that only earned income can be invested. If his wife is working, can he place $2000 of her money into his Roth? Can this earned income that must be placed into the Roth be any type of income including investment income as long as it has already been taxed? Eagerly awaiting a Foolish answer,

To the extent that his wife has earned income from employment/self-employment, up to $2,000 can be contributed to each of their accounts. This is conditioned by a rule that the employment income must equal, or exceed, the amount put into those plans.
In addition, if their modified adjusted gross income exceeds $150,000, there is a phaseout from that point on 'til the MAGI reaches $160,000. At that point no contribution to the Roth would be permitted.

"Jack"

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Yeah, how'd you know that???
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Here's a good question to see if you think I am who I am: What city or area does Uncle Paul live?
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danhornung re his uncle Paul:

"Yeah, how'd you know that???"

ESPN2 Classsics + WAG

Who can forget the Golden one.

Regards, JAFO
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danhornung: "Here's a good question to see if you think I am who I am: What city or area does Uncle Paul live?"

I am busted. The obvious answer would be Green Bay, or maybe Madison if sommewhere else in Wisconsin, but that is probably not right. I am fairly certain that he did not move back to Southbend, and I do not recall his hometown.

I would vote for the big city and bright lights, maybe LA? Another WAG.

Regards, JAFO

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