Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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
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.