I've done some Googling and I know that you're not allowed to invest disability payments towards retirement if it's your only source of income.
My question is this; If my spouse has taxable income, can I contribute my untaxable income to an IRA? Since we're married, we file jointly, so our income is shared, right?
I want to keep building our retirement portfolio, but if I'm gonna get got by the IRS for hundreds of thousands when I retire… well, I'd rather that didn't happen.
VA disability contributions to IRA
byu/PrematureNut13 inMilitaryFinance
Posted by PrematureNut13
2 Comments
If what you contribute is less than the total of disability and her income then you simply say the investment was from her income and you used your disability for living expenses. Once the money hits your bank account there is no difference. That is my take.
The physical money and where it comes from doesn’t matter. Yes, it you file jointly and she earns at least $14k taxable, you both can max your IRAs.