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IRA Issue... Or Not

I am 75 years old, retired. My income consists of divd/interest, SS, pensions. I have assorted trad. IRA accounts including a substantial self-directed one with TD Ameritrade (TDA). I take all my RMDs out of this one TDA account. It works well. I also have a regular TDA account. Here's my issue:

I meant to sell some covered calls in my TDA IRA account. Instead I did it in my regular account. It amounts to under $1400. I can xfer that position to my TDA IRA account. I assume this is just like contributing $1400 to my TDA IRA. Can I do this? Will it create issues when I take my RMD?

Reply to
MZB
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Contributions to an IRA cannot exceed your _earned_ income, according to Publication 590-A, pages 6 and 7.

It looks to me like you're out of luck, and you will need to declare the income from your covered calls in your taxable account. Unless, of course, you can take a part-time job and earn at least $1,400 by the end of the year.

(I'm not a tax practitioner. By all means check out Pub 590-A yourself.)

Reply to
Stan Brown

In addition to needing compensation income to qualify to contribute to an IRA, you cannot make an in-kind contribution. All contributions must be in cash.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

For that modest amount, I'd just pay the tax. The contortions to defer tax a few years wouldn't be worth the effort.

Reply to
John Levine

Thank you for all the replies.

Mel

Reply to
MZB

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