rental income

Submitted by Douglas Broome on Thu, 2014-01-09 03:33

My son owns rental properties and rental income is his principal income source. He does not get income in a conventional way, from an employer. Rental income does not qualify under regular IRA rules. I want to contribute to a Roth-type IRA for him. How do I accomplish this?

Thanks. Douglas



Submitted by Alan - IRA critic on Thu, 2014-01-09 17:09

He needs earned income as defined, so a part time job that generates salary or commission income is the most likely source. If he is married and spouse has earned income, he could make a spousal IRA contribution using her income. These rules are the same for a TIRA or Roth IRA contribution. If he has the earned income, you can still gift him the money to make the contribution, but not without him having enough earned income.

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