What options exist for creating and funding a retirement account, if all one's income is derived solely from investing and trading?
Has anyone found a way to do this, who is not a day trader?
From the research I've done so far, I can only find one: you must qualify as a professional trader and form an entity.
Is there another option that has escaped me? Is it also possible to form an entity as an investor or only as a trader?
All my income is derived from investments/trading, and because of this I can't contribute to a retirement account. But I also don't know if I qualify as a professional trader. I am not a day trader. I generally only make a few hundred trades a year, and I only trade volatility instruments, so I don't even put trades on except under certain circumstances, and may trade very little in the interval.
As an aside, is anyone aware of the reasoning behind making it difficult for those whose income is derived from investments/trading to contribute to a retirement account? Since the IRS distinguishes investment income from earned income, and does not allow contribution to a retirement account without earned income, it is clear they are intentionally trying to block independent investors/traders from having retirement accounts.
So far as I can see, only independent investors & traders lose out as a result of these laws, since the income of those who trade with a firm will qualify as earned income.
Has anyone found a way to do this, who is not a day trader?
From the research I've done so far, I can only find one: you must qualify as a professional trader and form an entity.
Is there another option that has escaped me? Is it also possible to form an entity as an investor or only as a trader?
All my income is derived from investments/trading, and because of this I can't contribute to a retirement account. But I also don't know if I qualify as a professional trader. I am not a day trader. I generally only make a few hundred trades a year, and I only trade volatility instruments, so I don't even put trades on except under certain circumstances, and may trade very little in the interval.
As an aside, is anyone aware of the reasoning behind making it difficult for those whose income is derived from investments/trading to contribute to a retirement account? Since the IRS distinguishes investment income from earned income, and does not allow contribution to a retirement account without earned income, it is clear they are intentionally trying to block independent investors/traders from having retirement accounts.
So far as I can see, only independent investors & traders lose out as a result of these laws, since the income of those who trade with a firm will qualify as earned income.
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