#1
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Retirement accounts for poker players?
This is probably a personal finance 101 question, but...
If poker is your sole source of income, what -- if any -- retirement accounts can you create to defer paying taxes on gambling winnings? As I understand it, you aren't allowed to fund a Roth IRA account with gambling winnings. Is this true for all retirement accounts? Does it matter whether you claim gambling winnings as "Other Income" on your taxes or whether you file as a professional gambler? What kinds of retirements accounts can you create if you're self-employed? |
#2
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Re: Retirement accounts for poker players?
You can get a ROTH IRA as long as it is income.
You can also get SEP-IRA. |
#3
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Re: Retirement accounts for poker players?
I am not sure what you mean by "income." Do gambling winning count? If so, that contradicts what I have heard. Or does it depend on how you file your taxes?
This stuff makes my head hurt. Say someone made over $100,000 playing poker, so he is not eligible for a Roth IRA. He does not plan to file as a professional gambler. Can he fund an SEP-IRA account with some of these winnings? |
#4
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Re: Retirement accounts for poker players?
[ QUOTE ]
I am not sure what you mean by "income." Do gambling winning count? If so, that contradicts what I have heard. Or does it depend on how you file your taxes? This stuff makes my head hurt. Say someone made over $100,000 playing poker, so he is not eligible for a Roth IRA. He does not plan to file as a professional gambler. Can he fund an SEP-IRA account with some of these winnings? [/ QUOTE ] no not from gambling winnings, it must be earned income. |
#5
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Re: Retirement accounts for poker players?
[ QUOTE ]
no not from gambling winnings, it must be earned income. [/ QUOTE ] Not true. Poker earnings are earned income |
#6
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Re: Retirement accounts for poker players?
[ QUOTE ]
[ QUOTE ] no not from gambling winnings, it must be earned income. [/ QUOTE ] Not true. Poker earnings are earned income [/ QUOTE ] so then does this guy also have to pay self-employment taxes, because if so then he is basically filing as a pro. |
#7
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Re: Retirement accounts for poker players?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] no not from gambling winnings, it must be earned income. [/ QUOTE ] Not true. Poker earnings are earned income [/ QUOTE ] so then does this guy also have to pay self-employment taxes, because if so then he is basically filing as a pro. [/ QUOTE ] Since the OP says poker is his sole source of income, I'm fairly certain he should file as a pro. But I'm not a tax expert, so I can't really get into that. |
#8
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Re: Retirement accounts for poker players?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] no not from gambling winnings, it must be earned income. [/ QUOTE ] Not true. Poker earnings are earned income [/ QUOTE ] so then does this guy also have to pay self-employment taxes, because if so then he is basically filing as a pro. [/ QUOTE ] yes. i met with a cpa recently and we decided i'm going to be filing as a pro poker player. the best way for me to do this (could be different depending on your situation) was for me to be the sole proprieter of my own business. so i have to pay self-employment tax and social security and stuff like that. but then i can also take deductions for business related stuff, like my computer costs, or interent costs or travel expenses if i go to a casino to play poker, etc. probably worth it to meet with someone yourself to find out the best thing for you to do. i'm gong to be setting up a SEP IRA account, which is nice because you can put a lot more into it than a normal roth ira. |
#9
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Re: Retirement accounts for poker players?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] [ QUOTE ] no not from gambling winnings, it must be earned income. [/ QUOTE ] Not true. Poker earnings are earned income [/ QUOTE ] so then does this guy also have to pay self-employment taxes, because if so then he is basically filing as a pro. [/ QUOTE ] Since the OP says poker is his sole source of income, I'm fairly certain he should file as a pro. But I'm not a tax expert, so I can't really get into that. [/ QUOTE ] well the original poster wanted to know whether a non-pro could have a retirement account from the gambling winnings. I don't see any ruling where a non-pro could have a retirement account. |
#10
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Re: Retirement accounts for poker players?
[ QUOTE ]
well the original poster wanted to know whether a non-pro could have a retirement account from the gambling winnings. I don't see any ruling where a non-pro could have a retirement account. [/ QUOTE ] Since I'm not an expert, I might be way off, but I don't see how being a pro vs. non-pro changes the nature of the income, as it is still legally "earned income." |
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