Does money in a Roth IRA count as income?
I’m 58 and want to put some money in a Roth IRA. Will this be considered income and affect my government assistance?
Money contributed to a Roth IRA is taxed in the year you make the contribution. Vice-versa, money put into an IRA is deducted from taxable income. Therefore if you have income of 50k in 2018 and make a 5500 contribution to a Roth IRA, you'll still be taxed on 50k of income.
Unlike a traditional IRA, monies contributed to a Roth IRA are not tax deductible. You must have earned income in order to contribute to a Roth. So, I guess you could say that it is considered income, simply because you're not deducting the contribution amount from your taxes.
You can contribute up to $6500 each year or the amount of earned income you have, whichever is smaller. On the upper end, if you're making more than $120k as a single filer or $189k filing jointly, there is a phase out of roth contribution eligibility.
Sorry, but I can't speak to how it may affect your government assistance.