I have a friend who has been contributing to her Roth IRA, but doesn’t have the amount she’s contributing as income from a W2 or 1099.
She tutors, babysits, and dog sits a lot so she does get paid more than what she contributes in a year, but most of that is in cash.
Is this allowed? I told her to look into it more because I was under the impression that the earned income requirement for contributing to a Roth has to come from a W2 or 1099. I’m worried on her behalf because I‘be heard about a pretty hefty penalty fee for over contributing and that it can add up if not fixed sooner rather than later.
Submitted May 20, 2021 at 02:37AM by An0nNeur0n https://ift.tt/3weoVmW
