Apr
07
2011
By Guest (not verified)
I receive SSI and long-term disability checks each month and I am classified as permanently disabled.
I am 61 so I believe that I can place up to $6,0000.00 per year into a retirement account (IRA). Is there any legal reason(s) that would prohibit me from doing this?
I have a retiremnent account set up with a private management company already inforce - can I place more money into it each year?
Forums:
Can Social Security Disability payments be placed in an IRA?
This would require some digging -- check with your tax adviser. My suspicion is it won't be allowed.
To save in an IRA, you need to have "taxable compensation" during the year.
"Taxable compensation" includes :
Taxable compensation does not include :
In some cases, if you receive a W-2 for disability payments, they may be may be considered as "taxable compensation", especially if they're from a private insurer. Do you receive a W-2 for your Social Security disability payments?
http://www.irs.gov/publications/p590/ch01.html