Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Can I put my leftover FASFA money into Roth IRA?

I am receiving financial aid this summer and will have probably $2,000 left over. I currently do not work because I am attending school full time, can I deposit $1,000 into my Roth IRA If I make one?

7 Answers

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  • Eva
    Lv 7
    1 month ago

    No. In order to contribute to a Roth or Traditional IRA, you must have earned income. You cannot contribute more than you made.

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  • Judy
    Lv 7
    1 month ago

    No, you have to hav earned income to contribute to an IRA, Roth or traditional.

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  • 1 month ago

    if you are not working, no.

    To contribute to ANY IRA, you must have "earned income".

    Earned Income is income from working; either a W2 job or Self-Employment.

    If you read the rules, the annual contribution limits for IRAs are the LOWER of $6,000 or your earned income (income from working).

    So, if you are not working and have zero earned income, the calculation is:

    A)  $6000

    B)  $0  (Your earned income)

    Your limit is $0; the lower of A or B.

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  • 1 month ago

    If you did not make any money, then you cannot put any money into your Roth IRA.

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  • Anonymous
    1 month ago

    Possibly, but you didn't give enough information.

    Have you worked at all in the past 17 months (between 1/1/2019  and now)?   If not, the answer is no and you can stop reading.

    If yes, the answer to your question is yes.

    The federal tax filing deadline for 2019 tax returns has been extended until 7/15/2020.   The 2019 IRA contribution deadline has also been extended to 7/15/2020.

    I understand you're not working NOW, but you didn't say if you had any earned income in 2019 or earlier in 2020.   The other people who answered assumed you didn't.   They could be right or wrong.

    TL:DR?  

    You can contribute to a Roth IRA for 2019 up until 7/15/2020 if you had earned income in 2019.

    You can contribute to a Roth IRA for 2020 up until 4/15/2021 if you have earned income in 2020.

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  • Pearl
    Lv 7
    1 month ago

    i would ask financial aid about it

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  • A.J.
    Lv 7
    1 month ago

    No earned income is no Roth IRA

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