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. Unearned income, or passive income, includes dividends, capital gains, and interest on securities; Social Security benefits; unemployment benefits; child support; rental income; and inherited funds. Traditional IRA contributions are limited to $6,000 per individual, but an additional $6,000 can be contributed to a non-working spouse’s IRA, provided the couple files a joint