Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Can I contribute to a Roth IRA without a job but from savings?

Hello I am a 21 year old in the process of getting a job soon, but would like to open a Roth IRA with Schwab and start investing in target date funds with my savings. I am selling my truck and I own it and I will be buying a cheaper car and will probably be getting around a $8,000 check after trade my in. Could I use $2,000 to contribute to my Roth IRA? Or is only my job income the only thing I can contribute with once I get it?

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  • Judy
    Lv 7
    1 month ago

    no, only earned income

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  • 1 month ago

    Contribution to any kind of IRA are limited based on EARNED income.

    The actual source of the funds can be the savings account, but your earned income determines how much you can contribute.

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  • 1 month ago

    [ Technically, if you earn $2,000 you can put $2,000 in a Roth. It does not matter where the money came from.] But in real life, forget the Roth. Use current money for current expenses (like fixing up the cheaper car, dating, paying bills, food, etc) Forget those math gymnastics about have a million bucks 50 years from now. The sooner you get into a house (within reason) the better off your future will be. - accountant

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  • 1 month ago

    No.

    You can invest in target date funds in a regular brokerage account if you want, but you'd have to pay tax on the dividends each year.

    You cannot contribute to a Roth IRA if you have not worked.

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  • Anonymous
    1 month ago

    You can't unless you are married and your spouse has earned income.

    Either you or your spouse must have earned income equal to or more than the amount contributed to your Roth IRA. 

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  • 1 month ago

    You to have earned income to contribute to an IRA.

    Where the actual money comes from doesn't matter.

    If you want to contribute $2000 to an IRA (Roth, traditional, sep, et)

    then you have to have at least $2000 in earned income for the year.

    It's fine to use the money from selling the truck, as long as you at least that much from earned income for the year.

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    • NA
      Lv 7
      1 month agoReport

      Then you can't put any money into a Roth unless you are married and your spouse worked.

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  • A.J.
    Lv 7
    1 month ago

    Contributions to an IRA or Roth or 401K are all based on earned income.

    Investments would not be included unless specially tax structured as a business with you as employee. There are costs to that.

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