Maximum Roth IRA contribution for self employed son
My son is 28 and single and has his own business. As yet he doesn’t have to file taxes as his income is below the minimum to file. Can he still put money in a Roth IRA? What is the maximum he can contribute?
Permalink Submitted by Alan - IRA critic on Thu, 2016-07-07 16:23
He could contribution up to 5500 or his net earnings from self employment, whichever is less. He would have to calculate the net earnings from self employment in the same manner as if he was filing. He must be making very little to not have to file while self employed due to having to pay self employment tax starting with a very low income.