In starting to do my 2012 taxes, TurboTax suggested I look at their deduction finder. They suggestion that I could make a nondeductible Roth IRA contribution up to $6000 per year. While not deductible, the earnings do not have to be reported as income. This sounds to good to be true.
At this time I have been retired and taking minimum required distributions from a traditional IRA. I have no income other than from investments and Social Security. That is, I am not an employee with any income reported on a W-2. I am still trying to figure out just what TurboTax is trying to tell me and just what Roth IRA rules are. I think TurboTax thinks that I am an active wage earner that is not part of a pension plan.
It sure would be helpful know if tracking such a Roth plan is a wild goose chase or truly some unbelievable windfall.