Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 7:49:18 PM

Do dividend and rental income count towards eligible earned income for Roth IRA contribution limits?

0 3 3723
1 Best answer
New Member
Jun 4, 2019 7:49:19 PM

Dividends are not earned income. The rental income is unearned unless it is earned income from self-employment, this would be someone who is in the business of renting property, otherwise, it is passive income.

3 Replies
New Member
Jun 4, 2019 7:49:19 PM

Dividends are not earned income. The rental income is unearned unless it is earned income from self-employment, this would be someone who is in the business of renting property, otherwise, it is passive income.

New Member
Jun 4, 2019 7:49:21 PM

Thank you! Just so that I'm clear, that means that my dividends and rental income DO NOT count towards the $135,000 IRA income limits correct?

New Member
Jun 4, 2019 7:49:22 PM

No, the contribution limit is based on Modified Adjusted Gross Income which INCLUDES dividends and rental property income.