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New Member
posted Jun 6, 2019 9:56:56 AM

If I have a net loss in my self-employment, can I still contribute to a Roth IRA?

I have income from my own business, but after applying deductions for expenses, I have a net loss.  Can I count the income piece for purposes of earned income to contribute to a Roth?

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1 Best answer
Level 9
Jun 6, 2019 9:56:58 AM

No, it is the net income that matters.  If this is your only earned income, you will not be able to contribute to a Roth IRA.

4 Replies
Level 9
Jun 6, 2019 9:56:58 AM

No, it is the net income that matters.  If this is your only earned income, you will not be able to contribute to a Roth IRA.

Level 7
Jun 6, 2019 9:57:01 AM

No, unfortunately, you must produce positive net income to deduct an IRA.

Per IRS: To contribute to a Traditional IRA, you must be under age 70½ at the end of the tax year.

 You, and/or your spouse if you file a joint return, must have earned income, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment.

Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.


New Member
Feb 29, 2020 11:46:07 AM

A clarifying questions:

Married, filing jointly.  Together we have a net positive income. Separately, my business has a net loss (though I had income from it).  Can we each contribute to an IRA because we had net positive income, or only my wife can, and I cannot?

Level 15
Feb 29, 2020 12:10:07 PM

if your spouse had income and you did not, they can contribute up to that income or the limit to your IRA.
That is a spousal IRA contribution.