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What money can you contribute to an IRA Roth? If someone leaves you money or gifts you money can you put this into an IRA Roth?

 
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TomD8
Level 15

What money can you contribute to an IRA Roth? If someone leaves you money or gifts you money can you put this into an IRA Roth?

Yes, if you also have taxable compensation and are under the income limits.  (Gifts are not taxable compensation.)

Generally, you can contribute to a Roth IRA if you have taxable compensation and your modified AGI is less than:

$199,000 for married filing jointly or qualifying widow(er);
$135,000 for single, head of household, or married filing separately and you didn’t live with your spouse at any time during the year; and
$10,000 for married filing separately and you lived with your spouse at any time during the year.

 

"Taxable compensation" means income you earn from working.

Roth IRA contributions for 2019 are limited to $6,000 if you're under age 50; $7,000 if you're older. You cannot contribute more than you've earned during the year.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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