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sr4343
New Member

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

 
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8 Replies

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

Sorry you can only contribute to a IRA based on earned income from W2 wages or a Net Profit on schedule C.  And 5,500 is the max if you are under 50.  You need to see an accountant or financial planner.
Carl
Level 15

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

Contributions to a traditional IRA are based on earned income. Lottery winnings are not earned income.
Contributions to a ROTH IRA are also based on earned income, and the max you can contribute to a ROTH is $5500 or the amount of your earned income, whichever is the *lesser*. (If over age 50, max ROTH contribution is $6500)

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

And see IRA Contributions
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p590a.pdf">https://www.irs.gov/pub/irs-pdf/p590a.pdf</a>

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

25% Federal tax isn't enough at that income level, either.  You will owe more.
<a rel="nofollow" target="_blank" href="https://www.thebalance.com/federal-income-tax-rates-4108244">https://www.thebalance.com/federal-inco...>

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

have you not already been besieged by financial planners and long lost relatives?
sr4343
New Member

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

Well, im asking for a friend.. i do her taxes every year and this time might have to let a professional do it..thank you for taking the time to answer my question.

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

can only put $5500 a year in Roth IRA

https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2017

So you can't do that either.

There is also a phaseout of itemized deductions and personal exemptions at your income level.

Won $537K in lottery. $380 after 25% fed and 8% state tax. want to put 100k in IRA but its only been taxed 25%. can only put $5500 a year in Roth IRA. what should I do?

"phaseout". easy come, easy go. And if you live in New Jersey, the Inheritance tax can take out another big chunk.

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