Retirement tax questions

As long as you have compensation from working, you can contribute to an IRA.  Compensation includes W-2 wages, and also income earned from self-employment. (Technically, your self-employment compensation is about 92% of your net profit, for reasons having to do with the difference between Social Security tax for employees and self-employment tax.)

 

Whether you may make a Roth IRA contribution, or a tax deductible contribution to a traditional IRA, depends on your income and your filing status.


There are several other options for self-employed individuals to contribute to a retirement account that have higher contribution limits, although they are a bit more paperwork. You may want to review these options.

https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people