Gambling winnings -- > Roth IRA?

[balkii]

I have a roth IRA that I had been putting money into for a couple years. I was collecting unemployment last year was putting some of that money into my IRA. Just recently I was informed that I cannot put that money into my IRA because you can only put "Earned income" (as in a job) into a ROTH IRA.

Now my question is, is gambling winnings "earned income?" Does anyone have a roth IRA?

Thanks for any help

[adios]

If you have a job I don't see how the difference between gambling income and wages could be determined. If you don't have a job I'm not sure as to what your options are. You need an accountant I believe.

[PuppetMaster]

word

[BadBoyBenny]

SInce no taxes are paid when you withdraw from a Roth the government wants to make sure that you paid taxes on the income before putting it in. I've never been on unemployemnt but I assume its not taxed, is that right? If you report gambling winnings on your taxes then it is probably OK. If not as long as you have enough regular income to look like you could cover your contributions and lifestyle then I doubt they could uncover any wrongdoing in an audit.

[adios]

[ QUOTE ]
I've never been on unemployemnt but I assume its not taxed, is that right?

[/ QUOTE ]

My understanding is that unemployment income is NOT exempt from taxation.

[BadBoyBenny]

You are right, I don't know enough about Roths to know what rule excludes unemployment earnings

http://www.irs.gov/taxtopics/tc418.html

[balkii]

[ QUOTE ]
You need an accountant I believe.

[/ QUOTE ]

Yeah this is what it really comes down to.

My unemployment was taxed, just like a regular paycheck.


Thanks