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Best answer by Marketstar

No ,one must have earned income as defined by the IRS.

Earned income would include wages, salaries, commissions, tips, bonuses, or net income from self-employment. Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.

Earned income does not include earnings and profits from property, such as rental income, interest and dividend income, or any amount received as pension or annuity income, or as deferred compensation.

See https://www.irs.gov/taxtopics/tc451.html

1 reply

Employee
June 1, 2019

No ,one must have earned income as defined by the IRS.

Earned income would include wages, salaries, commissions, tips, bonuses, or net income from self-employment. Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.

Earned income does not include earnings and profits from property, such as rental income, interest and dividend income, or any amount received as pension or annuity income, or as deferred compensation.

See https://www.irs.gov/taxtopics/tc451.html