Well let's start by saying I am a bit jealous. I am currently the same age. So let's start with the premise of the question, which is what are the parameters for contributing to a Roth IRA. You are over the age of 50, so you can use the additional catch-up contribution limit for individuals age 50 and over of $1,000, in addition to the $7,000 limit for both 2024 and 2025.
To contribute to a Roth IRA, you must have earned income, such as wages or net-self-employed (Gross earnings from your trade or business, minus all of your allowable business deductions and depreciation.).
There is nothing preventing your daughter from paying you as an employee for the services that you seem to currently be providing gratis. See this for details: Family employees
The issuance of the W-2 should be sufficient. this would show your employee compensation that supports the Roth IRA contribution.
Keep in mind though also about the limits on a direct Roth contribution. For 2024 the limits are:
Single filers must have a modified adjusted gross income (MAGI) of less than $161,000, and married couples filing jointly must have a MAGI of less than $240,000.
If you make too much to contribute to a Roth IRA, you can consider a backdoor Roth IRA.
Thank you for your question @Glen Decoux and enjoy your retirement.
All the best,
Marc T.
Turbo Tax Expert
27 Years of Helping Clients
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