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OK, guys and gals. I have a situation.

1. I am 68 years of age, collecting SS, and have my own business which is a minimal income producer. (Self-employed real estate legal assistant, working from 5 - 10 hours per week). My corporation is continuing to contribute to the SEP-IRA and will do so as long as I have the corporation and a paycheck from same.

2. I have a ROTH, as well as a brokerage account. Whoa, now, I am not wealthy in any sense of the word.

3. With the Earned Income, it is my understanding that I may continue to contribute to the ROTH. As to the contributions, can I contribute my full amount of paychecks (gross) or the net received. How much can I personally contribute to the ROTH on a yearly basis. The reason I am wondering, is that I will receive a lump sum of money this summer, and would like to replace some money I extracted from the ROTH to rehab a house I have in FL.

For the rest of this, I am going to another message.


Donna
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1. I am 68 years of age, collecting SS, and have my own business which is a minimal income producer. (Self-employed real estate legal assistant, working from 5 - 10 hours per week).

"Self-employed" means that you report the income and expenses from this business on Schedule C of your 1040.

My corporation is continuing to contribute to the SEP-IRA and will do so as long as I have the corporation and a paycheck from same. \

What corporation? You just said you're self-employed. Which is it? You either are self-employed or you are an employee of a corporation. (You may also be a (or the sole) shareholder of that corporation.) If you work for a corporation, what kind of corporation is it, and how is it taxed?

3. With the Earned Income, it is my understanding that I may continue to contribute to the ROTH. As to the contributions, can I contribute my full amount of paychecks (gross) or the net received.

It's actually "taxable compensation," which could be an issue once we resolve the self-employed vs employee issue.

How much can I personally contribute to the ROTH on a yearly basis. The reason I am wondering, is that I will receive a lump sum of money this summer, and would like to replace some money I extracted from the ROTH to rehab a house I have in FL.

At your age the limit on your total IRA contributions, Roth and traditional combined, for 2013 is the lesser of your taxable compensation or $6,500 .

If it's been more than 60 days since you took the distribution from the Roth for the rehab, you cannot replace it. The best you can do is make 2013 contributions, assuming you have sufficient taxable compensation.

Phil
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Phil, I think of it as "self-employed". Actually, it is a Sub-S Corporation.

I was aware of the 60 day rule on replacing the money in the ROTH. I used the money to rehab the house in late 2012 and early 2013. So, now I want to contribute the maximum I can which appears to be the $6,500.

I have not filed my taxes for 2012 (will file in October..awaiting K-1). Can I still contribute for 2012?

Donna
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Phil, I think of it as "self-employed". Actually, it is a Sub-S Corporation.

In that case your taxable compensation is your gross pay.

I have not filed my taxes for 2012 (will file in October..awaiting K-1). Can I still contribute for 2012?

No. See Pub 590.

Phil
Rule Your Retirement Home Fool
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