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.
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)
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>
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-income-tax-rates-4108244</a>
have you not already been besieged by financial planners and long lost relatives?
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.
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.