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harvmary17
New Member

How much can I contribute to a Roth IRA if I have wages of $5,000, and a LLC loss of $4,000 on Sch E? Assume I am below threshold for reduced contributions.

 
3 Replies
Critter
Level 15

How much can I contribute to a Roth IRA if I have wages of $5,000, and a LLC loss of $4,000 on Sch E? Assume I am below threshold for reduced contributions.

 

"LLC loss of $4,000 on Sch E"

 

That is too vague ... is the loss from a rental or a K-1 from a partnership or corporation ?  

 

 

 

 

macuser_22
Level 15

How much can I contribute to a Roth IRA if I have wages of $5,000, and a LLC loss of $4,000 on Sch E? Assume I am below threshold for reduced contributions.

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 generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, alimony and separate maintenance, and nontaxable combat pay ).

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.**
dmertz
Level 15

How much can I contribute to a Roth IRA if I have wages of $5,000, and a LLC loss of $4,000 on Sch E? Assume I am below threshold for reduced contributions.

If box 1 of your W-2 shows $5,000 (and you have no amount in box 11), you can contribute $5,000 to IRAs.  What you have on Schedule E has no bearing on your eligibility to contribute to an IRA.

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