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Contributing to a Roth before first paycheck

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pentosephosphatepathway
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Contributing to a Roth before first paycheck  Reply with quote  

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?
Post Sun Feb 01, 2015 5:24 pm
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Wino
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Re: Contributing to a Roth before first paycheck  Reply with quote  

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.
Post Sun Feb 01, 2015 6:02 pm
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blixet
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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.

http://www.irs.gov/publications/p590/

Information is more valuable sold than used – Fischer Black
Post Sun Feb 01, 2015 6:10 pm
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pentosephosphatepathway
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Very helpful, thanks to you both
Post Sun Feb 01, 2015 6:22 pm
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