IRAs For Traders

Discussion in 'Professional Trading' started by JWS11, Feb 9, 2008.

  1. JWS11


    Can anyone enlighten me whether we, individual traders, can use part of our earnings to contribute to a traditional IRA? I heard that our income is not "earned" and therefore does not qualify, but I'm not sure. How about a Roth IRA or other similar retirement-related schemes? Where can I look to get the definitive answer or some authentic information source that does not cost $hundreds per hour? Any suggestions or insights will be very welcome. TIA.
  2. LongArm


    If you operate your trading business as a sole proprieter like most do, then no, you can't contribute to a retirement plan. That's because, as you said, you have no "earned income." If, OTOH, you trade under a separate entity, such as a corporation or LLC, then yes, you can contribute to a retirement plan.

    Here's a page with some info on this stuff:
  3. JWS11


    Thanks LongArm, I appreciate your help.