Partnership income & Roth IRA contribution


K

kgstones

I have a small business partnership with my son and have a profit in
2005 which we reported on Schedule K-1s. I am using Turbo Tax to do my
taxes and when I tried to contribute part of my share of the profits to
a 2005 Roth IRA as reported on line 1, Ordinary business income, on the
K-1 Turbo Tax indicated that I was not able to do so. I am 59 years
old and tried to contribute $4500 which is less than the amount of my
share of the profit.

My question is - isn't the amount earned as nonpassive income in a
partnership earned income? Why can't I contribute to a Roth IRA. I do
not have any other earned income from any other source.

Thanks for any help in advance,
kgstones
 
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P

Paul Thomas, CPA

kgstones said:
I have a small business partnership with my son and have a profit in
2005 which we reported on Schedule K-1s. I am using Turbo Tax to do my
taxes and when I tried to contribute part of my share of the profits to
a 2005 Roth IRA as reported on line 1, Ordinary business income, on the
K-1 Turbo Tax indicated that I was not able to do so. I am 59 years
old and tried to contribute $4500 which is less than the amount of my
share of the profit.

My question is - isn't the amount earned as nonpassive income in a
partnership earned income?
It certainly should be.


Why can't I contribute to a Roth IRA. I do
not have any other earned income from any other source.

Something may be coded wrong in the software. Check your data entry on the
K-1 input to see if you have somethig checked that shouldn't be - or
something not checked that should be.


If you can't figure it out, contact the software provider.
 

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