4

So I am a student and will be making less than 6 thousand dollars this year, and so I'll be exempt from taxes. Can I use some of the money I make to contribute to a Roth IRA?

Chris W. Rea
  • 31,999
  • 17
  • 103
  • 191
user2867777
  • 43
  • 2

1 Answers1

5

If by exempt, you're just referring to the fact that the income is less than your standard deduction and personal exemption, then yes, that money can be used to fund a Roth. Great time to do it.

To be clear, in 2014 the limit for an under 50 year old, is $5500 ($6500 if 50 or older). Only earned income may be used for deposits. No interest, dividends, etc.

JoeTaxpayer
  • 172,694
  • 34
  • 299
  • 561