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If I have a net loss in my self-employment, can I still contribute to a Roth IRA?

Forum|Forum|7 years ago
June 6, 2019
2 replies
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I have income from my own business, but after applying deductions for expenses, I have a net loss. Can I count the income piece for purposes of earned income to contribute to a Roth?

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Best answer by Zbucklyo

No, it is the net income that matters. If this is your only earned income, you will not be able to contribute to a Roth IRA.

Z

ZbucklyoAnswer

Employee

No, it is the net income that matters. If this is your only earned income, you will not be able to contribute to a Roth IRA.

M

Marketstar

Employee

No, unfortunately, you must produce positive net income to deduct an IRA.

Per IRS: To contribute to a Traditional IRA, you must be under age 70½ at the end of the tax year.

You, and/or your spouse if you file a joint return, must have earned income, such as 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.

V

VoxProPat

A clarifying questions:

Married, filing jointly. Together we have a net positive income. Separately, my business has a net loss (though I had income from it). Can we each contribute to an IRA because we had net positive income, or only my wife can, and I cannot?