IRA (Mistakes were made)

[JTH]

Just a quick note, for anyone who sees this.

I made the mistake of contributing brokerage trading income to my ROTH IRA. No, you can't do this, you cannot contribute retirement income, or trading income into an IRA. Bottom line, if you don't have a job, then don't put money into a ROTH IRA.

I have no idea how I didn't know this, but I didn't. Removing the funds is a PIA due to the tax implications, you have to calculate what you put in and what you earned with this money (not easy). I caught this early, but if you let this ride too long, "Ineligible contributions trigger a 6% penalty each year until you remove the excess."

How to Calculate (and Fix) Excess IRA Contributions

 

[James48843]

A good reason for my new part-time radio announcer job at $12 an hour, 10 hours a week.
Just enough to put every dime after taxes into a Roth. So far it’s added up to about $5k a year. Just sone play money, but at least I don’t have to pay it back! She sorry to hear of your issue. Good luck!


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[JTH]

A good reason for my new part-time radio announcer job at $12 an hour, 10 hours a week.
Just enough to put every dime after taxes into a Roth. So far it’s added up to about $5k a year. Just sone play money, but at least I don’t have to pay it back! She sorry to hear of your issue. Good luck!

Great points, most folks could at least keep a small job, if just for the benefit of contributing to their ROTH IRA. I retired in 2019, I could work (if I wanted to) but living in Poland creates some additional hurdles to jump through. I would totally dig doing a radio announcer job, sounds like fun (to me).

 

[nasa1974]

JTH,

Sorry to hear about the problem. Thanks for the information. Good luck.