WCI #255: Answering Your Questions About 401(k)s And How To Manage Them
White Coat Investor Podcast
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Is It Eligible for Retirement Account Contributions?
Rental income is not eligible to go into a retirement account of any kind. You don't pay social security tax or medicaro tax on it, and you can't use it for retirement account contributions. The real question that you've got to determine though is that money is earned income or not? And for a long term rental, it definitely isn't. But when you'r providing substantial services to them, then the income you make needs to be reported on a schedule c and is subject to self employment taxes.
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