Posted by rose - November 20th, 2008
I understand to contribute I must have earned income. My daughter can
pay me to be her property manager- up to $5000 per year. I would like
to make the maximum contribution to a roth- can I do this? Will it
impact my SSI?Hello and thank you for your question.
As you probably already know, in a Roth IRA contributions are not
deductible but earnings grow tax free and qualified withdrawals are
not taxable.
http://www.irs.gov/publications/p17/ar01.html
You can contribute to a Roth IRA while on Social Security, up to the
amount of your taxable compensation. You may continue to make
contributions to your Roth IRA even after reaching age 70 1/2.
http://www.irs.gov/taxtopics/tc309.html
As for SSI impact, the answer depends on your age. If you have
attained your normal retirement age (age 65) then receipt of income
does not compromise your SSI benefits. So only if you elected an
early benefit (usually age 62) and are still under 65 does the extra
income put your benefits at risk.
http://www.ssa.gov/OACT/COLA/rtea.html
In summary, if you're age 65 or older, go for it!
Search terms used:
social security retirement test
"social security" eligibility "roth ira " site:irs.gov
Thanks again for letting us help
Sincerely,
Google Answers Researcher
Richard-gamy dad was born 3/16/42 and just retired
can we pay him $5000 a year for managing our properties without impacting his SSI?That makes him 63, but checking the table at http://www.ssa.gov/OACT/COLA/rtea.html
he can earn up to $12,000 without loss of SSI benefits.
-R
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