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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Unionville on February 14, 2014, 10:36:52 AM

Title: Once you start living off your investments, do you still contribute to an IRA?
Post by: Unionville on February 14, 2014, 10:36:52 AM

I have a business and have always paid a SEP IRA, ROTH and Regular IRA.  I'm trying to find out what happens once I stop my business and only live off my investments.  Do you then contribute to your IRA from your investments income?  Or are your contributions no longer allowed since you don't really have a job or business? I'm 54 in case that matters.  Perhaps there are pros/cons to both?

Title: Re: Once you start living off your investments, do you still contribute to an IRA?
Post by: ZMonet on February 14, 2014, 10:47:22 AM

My understanding is that if you earn an income (not dividends or proceeds from stock sales), you can contribute to an IRA but otherwise you can't.  I wish it were otherwise as I'd love to start an IRA for my toddler.

Title: Re: Once you start living off your investments, do you still contribute to an IRA?
Post by: foobar on February 14, 2014, 10:48:21 AM

You need to have eligible income (or a spouse that does). Investment income doesn't count. If you were allowed (maybe you make 5k in side jobs), doing a contribution to a ROTH is a no brainer

Quote from: meteor on February 14, 2014, 10:36:52 AM

I have a business and have always paid a SEP IRA, ROTH and Regular IRA.  trying to find out what happens once you stop my business and only live off my investments.  Do you then contribute to your IRA from your investments income?  Or are your contributions no longer allowed since you don't really have a job or business? I'm 54 in case that matters.  Perhaps there are pros/cons to both?