Do dividend and rental income count towards eligible earned income for Roth IRA contribution limits?
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1 Best answer
DanO
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
DanO
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.
smnorth
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?
DanO
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.