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New Member
posted May 24, 2021 7:57:10 AM

Can i use payments received from a privately held mortgage to contribute to a roth IRA?

i am retired and age 73 nd hold mortgage on my old house. can money received be used to contribute to my roth

0 3 441
3 Replies
Level 15
May 24, 2021 8:05:35 AM

Only compensation can be used to fund an IRA.  Generally, compensation is what you earn from working.

 

See - https://www.irs.gov/publications/p590a#en_US_2020_publink1000230364

 

Compensation doesn’t include any of the following items.

  • Earnings and profits from property, such as rental income, interest income, and dividend income.

  • Pension or annuity income.

  • Deferred compensation received (compensation payments postponed from a past year).

  • Income from a partnership for which you don’t provide services that are a material income-producing factor.

  • Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b.

  • Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs.

New Member
May 24, 2021 8:35:06 AM

thank you

follow up question if you can

would this qualify s a contribution to self employed retirement plan? 

Level 15
May 24, 2021 2:00:54 PM

No ... again for the same reasons listed in the other answer.