Can unemployed people contribute to an IRA?
Updated: 1/21/2013
Article ID: IAS10201
To be eligible to contribute to an IRA account you must have compensation, which includes wages, salaries, commissions, self-employment income, alimony or separate maintenance, or nontaxable combat pay. Total compensation is not reduced by self-employment losses.
Rental income, dividends, interest, capital gain, pension, unemployment, or amounts you exclude from income, such as foreign earned income, are not considered compensation.