ALIMONY AND IRA
Alimony income qualifies as the equivalent of earned income for the purpose of making an IRA contribution. This is regardless of whether it is a traditional deductible IRA, a non-deductible IRA, a Roth IRA – any of those IRAs can be paid as the result of receiving alimony income, even if you have no other earned (for instance think of a W-2) income. Whether or not it is worth it for you to do so is a personal tax and cash flow matter.
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