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?

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On Wed, 9 Aug 2023 10:43:30 EDT, MZB wrote:

I am 75 years old, retired. My income consists of divd/
interest, SS, pensions.

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?

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.)

--
Stan Brown, Tehachapi, California, USA https://BrownMath.com/
Shikata ga nai...

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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On Wednesday, August 9, 2023 at 12:42:17 PM UTC-4, Stan Brown wrote:

On Wed, 9 Aug 2023 10:43:30 EDT, MZB wrote:

I am 75 years old, retired. My income consists of divd/
interest, SS, pensions.
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?

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.)

--
Stan Brown, Tehachapi, California, USA https://BrownMath.com/
Shikata ga nai...
--

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

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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
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<< The Charter and the Guidelines for submitting posts >>
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<< are at www.asktax.org. >>
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Instead I did it in my regular account. It amounts to
under $1400. ...

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


--
Regards,
John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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On 8/9/2023 8:06 PM, John Levine wrote:

Instead I did it in my regular account. It amounts to
under $1400. ...

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

Thank you for all the replies.

Mel

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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