Roth IRA contribution from LLC account?
I read somewhere that contributions to a Roth IRA account must come from the account owner or account owner’s spouse. If someone is self-employed, with a single-member LLC, can the Roth IRA contributions be made from the LLC account and just be treated as an owner’s draw for tax purposes? Or does the owner’s draw need to be made to owner’s personal bank account first, then the Roth contribution is made directly from that account by the owner?
I’ve searched Pub 590 and can’t find the answer.
Permalink Submitted by Alan - IRA critic on Fri, 2015-08-21 16:09
Yes, the contribution can be made from the LLC account. For that matter, the contribution can also be from the check of a relative gifting the Roth contribution to the Roth owner.
Permalink Submitted by Linda Taylor on Fri, 2015-08-21 18:06
Thank you so much! That’s exactly what I needed to know and couldn’t find the definitive answer anywhere. Thank you!