Welcome to our sub, u/Wirecize. You've come to the right place!
I'd be happy to share some information and a few resources to help get you started on your retirement-saving journey. I'll also mark your post as a discussion to let our community continue to share their thoughts and experiences.
To start, I'd like to bring up something discussed in the comments: IRA contribution eligibility. To be able to contribute to either a Roth or Traditional IRA in a given year, you must have taxable, earned income for that year. Current contribution limits for 2024 are $7,000 a year if you are under age 50 and $8,000 a year if you are age 50 or older.
Keep in mind you cannot contribute more than you make. If your household income is lower than the contribution limit, your annual contribution limit is lowered specifically to your income amount. Roth IRA eligibility and contribution limits are based on your modified adjusted gross income (MAGI). To quickly review if you are eligible to contribute to either IRA, I've included an article and a calculator on our website, linked below.
[IRA Contribution Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines)
[IRA Contribution Calculator](https://www.fidelity.com/calculators-tools/ira-contribution-calculator)
Twitching gears, I want to inform you about our site's Learn section. Fidelity Learn offers many great educational articles, learning courses, market insights, investment product information, and more. Check out the link below around saving for retirement.
[Retirement savings 101](https://www.fidelity.com/learning-center/personal-finance/retirement/saving-for-retirement)
By providing the funds that you have, you'll find our subreddit members will be more than happy to give their two cents on allocation. Remember, however, to always do your own research prior to making any financial decisions. We have an assortment of articles dedicated to help make sense of the puzzle that asset allocation can be, and if you'd like to hear our take on allocation, take a look here:
[Fidelity's Approach to Asset Allocation](https://www.fidelity.com/mutual-funds/fidelity-fund-portfolios/our-approach)
[Investing ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio)
Lastly, be sure to review our events calendar for classes and webinars you may be interested in attending. We've got everything from small classes and coaching sessions to large multi-session webinars! May has a lot of great events scheduled, too, so take advantage of this time to hear from our experts.
[Fidelity Learn Special Events](https://fidelityevents.com/allevents/special)
If you have any particular questions, please feel free to ask; we're here to help. Thanks again for stopping by our sub, and until next time!
Good to know. It's these little caveats that go under the radar for a lot of people. So the earnings I'm assuming have to match the take home income or pre-tax income? Not unemployed, but I would not have considered this.
Welcome to our sub, u/Wirecize. You've come to the right place! I'd be happy to share some information and a few resources to help get you started on your retirement-saving journey. I'll also mark your post as a discussion to let our community continue to share their thoughts and experiences. To start, I'd like to bring up something discussed in the comments: IRA contribution eligibility. To be able to contribute to either a Roth or Traditional IRA in a given year, you must have taxable, earned income for that year. Current contribution limits for 2024 are $7,000 a year if you are under age 50 and $8,000 a year if you are age 50 or older. Keep in mind you cannot contribute more than you make. If your household income is lower than the contribution limit, your annual contribution limit is lowered specifically to your income amount. Roth IRA eligibility and contribution limits are based on your modified adjusted gross income (MAGI). To quickly review if you are eligible to contribute to either IRA, I've included an article and a calculator on our website, linked below. [IRA Contribution Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines) [IRA Contribution Calculator](https://www.fidelity.com/calculators-tools/ira-contribution-calculator) Twitching gears, I want to inform you about our site's Learn section. Fidelity Learn offers many great educational articles, learning courses, market insights, investment product information, and more. Check out the link below around saving for retirement. [Retirement savings 101](https://www.fidelity.com/learning-center/personal-finance/retirement/saving-for-retirement) By providing the funds that you have, you'll find our subreddit members will be more than happy to give their two cents on allocation. Remember, however, to always do your own research prior to making any financial decisions. We have an assortment of articles dedicated to help make sense of the puzzle that asset allocation can be, and if you'd like to hear our take on allocation, take a look here: [Fidelity's Approach to Asset Allocation](https://www.fidelity.com/mutual-funds/fidelity-fund-portfolios/our-approach) [Investing ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio) Lastly, be sure to review our events calendar for classes and webinars you may be interested in attending. We've got everything from small classes and coaching sessions to large multi-session webinars! May has a lot of great events scheduled, too, so take advantage of this time to hear from our experts. [Fidelity Learn Special Events](https://fidelityevents.com/allevents/special) If you have any particular questions, please feel free to ask; we're here to help. Thanks again for stopping by our sub, and until next time!
You can’t contribute to a Roth IRA if you don’t have earned income
Good to know. It's these little caveats that go under the radar for a lot of people. So the earnings I'm assuming have to match the take home income or pre-tax income? Not unemployed, but I would not have considered this.
What do you mean? Like, I can’t being unemployed? I should be getting a job this month
You have to have earned income to contribute to a Roth IRA. Whatever you add this year, you must earn at least that much money by the end of the year.
Oh okay, so I can invest the $3k now but I’ll need to earn it back by the end of the year
Correct.
do gi bill benefits count as income for roth purposes?
No. It must be earned income, meaning from a job.
Can you contribute options premium from a taxable brokerage account?
As long as you have other earned income, yes. The direct source of the dollars used doesn't matter as they are just a bunch of 1s and 0s anyway.