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. Passive income includes dividends, capital gains, and interest on securities in a portfolio. Rental income and inherited funds would also be considered passive income. Traditional IRA contributions are limited to $5,500 per individual, but an additional $5,500 can be contributed by the working spouse t