Joined: 01 Feb 2015
Location: United States
Contributing to a Roth before first paycheck
I am graduating from medical school in a few months and will be starting a paid residency position in July.
I have an existing Roth, and would like to contribute to it now since I have a little bit of extra money at the moment, however I have not yet earned any income this year yet.
My question then is: For 2015, can I make my full Roth contribution before I actually earn any income in 2015?
Sun Feb 01, 2015 5:24 pm
Wino Senior Member
Cash: $ 113.80
Joined: 03 Aug 2012
Re: Contributing to a Roth before first paycheck
quote:Originally posted by pentosephosphatepathway My question then is: For 2015, can I make my full Roth contribution before I actually earn any income in 2015?
As long as you have earned income in excess of the amount you contribute, it does not matter when you earn it during that tax year. In other words, as long as you have earned as much or more than you contribute to your Roth, it does not matter that the actual money is from earnings or any other source.
Sun Feb 01, 2015 6:02 pm
blixet Preferred Member
Cash: $ 32.55
Joined: 28 Apr 2013
Location: Southern California
IRS Publication 590 spells out the rules on IRA contributions. To my eyes, it only says that you must have earnings during the year for which you are contributing. There is no specific requirement that the money be earned before the IRA is contributed to that I have found in Pub 590. I agree with Wino but you should read it yourself to be sure.