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Returning Member

Can the proceed of a stock sale be used to contribute to a Roth IRA assuming I have no other income that year?

 
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Level 15

Can the proceed of a stock sale be used to contribute to a Roth IRA assuming I have no other income that year?

No.  The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2018, $5,500, or $6,500 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

Taxable compensation is money that you worked for such as W-2 box 1 or net self-employed income reduced by half the SE tax.


See this IRS article for Roth contribution limits:

https://www.irs.gov/retirement-plans/roth-iras



**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Highlighted
Level 15

Can the proceed of a stock sale be used to contribute to a Roth IRA assuming I have no other income that year?

No.  The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2018, $5,500, or $6,500 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

Taxable compensation is money that you worked for such as W-2 box 1 or net self-employed income reduced by half the SE tax.


See this IRS article for Roth contribution limits:

https://www.irs.gov/retirement-plans/roth-iras



**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post