For the purposes of contributing to an IRA, compensation (i.e. earned income) does not include income from a pension, an annuity or Social Security. Generally speaking, you must have earned the income by performing services (i.e. work) or received it as alimony and/or a separate maintenance for it to be considered compensation for the purposes of contributing to an IRA.

This question was answered by Denise Appleby
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  1. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money? I'm 56 ...

    Generally, for purposes of contributing to IRAs, 403(b)s and other retirement accounts, compensation is defined as income ... Read Answer >>
  2. I have some stocks in a taxable account. Can I use them to fund my Roth IRA instead ...

    Regular IRA contributions must be made in cash. Contributions of securities are not allowed. Internal Revenue Code Section ... Read Answer >>
  3. What investments are available to someone with no earned income?

    Disability income, such as income received by disabled veterans, is not considered "compensation" for the purpose of contributing ... Read Answer >>
  4. Can a simplified employee pension (SEP) IRA be converted to a Roth IRA in the same ...

    Yes. An SEP IRA can be converted to a Roth IRA.As you may know, an SEP IRA is just a Traditional IRA that receives employer ... Read Answer >>
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