Trader Status & Roth IRA

Discussion in 'Professional Trading' started by Ripley, Sep 4, 2005.

  1. I need to open up a Roth IRA for the next year (2006).

    Since I am a trader, I won't have any "earned" income.

    I'll also be setting up a corporation next year. Is there anyway I could have some earned income from the corporation (i.e. like consulting work etc) while also keeping my trader status.

    If I have some other form of earned income, I think I wouldn't be classified as a trader.

    Anyone who can help me out with this dilemma that I've been pondering for a long time, would be kept in the very highest esteem.
  2. The trick is to have a pure-play entity to do the trading through, and that entity pays earned income to the owner for services rendered with regards the trading activities.
  3. the corp can just pay you a salary. that won't have anything to do with trader status and then you can contribute to your ira.