husstang
Jan 13 2004, 01:11 AM
I am a college student that works during breaks from classes. I don't earn $3000 a year at these jobs and therefore not able to contribute the maximum to my Roth IRA. I have some money in a savings account and also some money in stocks. My two questions are: 1.) Does the interest from the savings account count towards my earned income, abling me to contribute more than I made at these jobs. And 2.) does the dividends and/or captial gains count toward my earned income, allowing me to contribute more than I earned at my job? thanks for the help.
John G
Jan 13 2004, 02:01 AM
1 - No.
2 - No.
Earned income is income from wages and can include some self employment type incomes like lawn mowing, babysitting jobs, and newspaper routes.