Reply To: Do Capital Gains count as qualifying income for a Roth IRA?

Home Fairmark Forum Retirement Savings and Benefits Do Capital Gains count as qualifying income for a Roth IRA? Reply To: Do Capital Gains count as qualifying income for a Roth IRA?

#14882
ruth
Participant

Alan is correct. First, to be eligible to make a Roth IRA contribution you must have earned income (compensation). Second, even if you have compensation, you can’t make a contribution if your modified AGI exceeds the limit for your filing status. Modified AGI includes all your income, including capital gains, except income from a Roth IRA conversion. See page 39 of Publication 590-A at https://www.irs.gov/pub/irs-prior/p590a–2019.pdf.