who can contribute to an IRA?
who can contribute to an IRA?
is it if one has earned income and not 70 1/2 yrs of age?
does it matter where this person lives?
I have someone that wants to make contributions but he lives in Japan but US citizen. he gets paid in Yen . does that matter?
How do we determine once some one has earnings and is not 70 1/2 if they are eligible to make contributions or not.
does citizenship or place they live or if they have social security or not play a roll?
Permalink Submitted by Peter Lingane on Wed, 2011-08-10 16:37
The only requirements to contribute to a traditional IRA are sufficient taxable compensation and under age 70.5 at the end of the year. The only requirements to contribute to a Roth IRA are sufficient taxable compensation and a sufficiently low modified AGI. The AGI limit depends on filing status; see Pub 590, p. 58.
Compensation is defined in Pub 590, pp 7-8. Compensation is reduced by the foreign income and housing exclusions for IRA contribution purposes.