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If you're astute (and you know you are!), you already know that ane of the main requirements for making contributions to an IRA is that you must take earned income. For most folks, that means you have a job... but a job isn't a requirement. Here are four ways that you can have "earned income" without a job - plus a few ways to make contributions without having paid ordinary income revenue enhancement on the wages. These exceptions are for either kind of IRA, traditional or Roth.

Iv Ways to Contribute to an IRA Without a Job

  1. If your income is solely from exercising non-qualified stock options. When you practise a non-qualified stock pick, the taxable component of the option exercise is considered taxable income, and therefore is eligible for contribution to an IRA.
  2. If you receive alimony, it is taxable every bit ordinary income, which is eligible for an IRA contribution.
  3. Scholarships and Fellowships - if these are taxable, that is, reported in box 1 of a W2 grade, they're eligible for contribution to an IRA.
  4. Spousal contribution. If your spouse has earned income (and you have none or not enough to make a maximum contribution), you are eligible to make an IRA contribution based on your spouse'due south income. The limit is that the total of all IRA contributions (yours and your spouse's) cannot exceed the earned income of the working spouse.

A Few Ways to Make Contributions Without Paying Taxation on the Income

  1. Not-taxable combat pay, which is reported in box 12 of your W2 grade, is also eligible for contribution to an IRA.
  2. Exempt students, with a role-fourth dimension job at the school (for example) tin can brand IRA contributions.
  3. If your income is less than your exemption and deductions, effectively you are not paying tax on the earnings - but the IRA contribution is based upon MAGI, so y'all tin still make an IRA contribution with the non-taxed funds.

If you happen to fit into 1 of the higher up situations, y'all may be able to make a contribution to an IRA for the year in which the income is received.