Can I make a nondeductible contribution to a traditional IRA (Individual Retirement Account) or to a Roth IRA if I have no taxable compensation?
No. It doesnt matter that no deduction will be claimed for the IRA contribution because, in order to be permitted to make a contribution to an IRA, whether it is a traditional, deductible or nondeductible IRA, or to a Roth IRA, you must have taxable compensation. Compensation includes wages, salaries, tips, professional fees, commissions, self-employment income and taxable alimony (IRS Publication 590).
Related Questions
- Can I roll over only the nondeductible contribution portion of my traditional IRA to a Roth IRA and thereby avoid the taxes that would be due on a rollover of my IRA earnings?
- Some of the contributions previously made to my traditional IRA account have been nondeductible contributions. How do I determine how much of my 2010 distributions are taxable?
- Can I make a nondeductible contribution to a traditional IRA (Individual Retirement Account) or to a Roth IRA if I have no taxable compensation?
