IRA: Earned income, market losses

Discussion in 'Professional Trading' started by newbunch, Oct 7, 2008.

  1. Anybody know....
    Can I contribute money to an IRA if I have earned income, yet have a negative gross income due to losses in the market?

    My market losses are in futures (60/40 taxation).

    I assume I can, but would like confirmation.
  2. piezoe


    you can
  3. Any link or citation?
  4. Surdo


    Unless you do a NOL carry forward, where do you deduct the IRA contribution, if you have no income? Earned income from a W2 and Capital Losses DO NOT net, I am sure you know this.

    How are you set up, as a retail trader or paid on a 1099 or K1 at a prop firm? You were not clear, do you have W2 income from a "job" as well?

    You really need to ask a CPA your question, instead of counting on a correct guess on a message board, or speak to an IRS representative and get a real answer!
  5. Thanks for the help.

    I am a private trader and get a 1099 from the broker.

    I work for a friend who gives me a 1099 at the end of the year. I file a Schedule C-EZ with the IRS for self employment.