Series 65: Contributing To An IRA

Contributing to an IRA

The government puts limits on IRA deduction amounts. All contributions must be made only from earned income, as opposed to passive income. Earned income typically means wages, or as the IRS puts it, taxable compensation. (Unearned income includes dividends, capital gains, and interest on securities; social security benefits; unemployment benefits; child support; rental income; and inherited funds.) Traditional IRA contributions have been limited to $6,000 per individual for 2019, but an additional $6,000 can be contributed to the non-working spouse’s IRA