Investing While on Disability

[Marc685]

Does anyone know if I am allowed to invest in a Roth IRA while on disability (private LTD insurance + social security insurance) or invest in any kind of tax advantaged retirement plan?

Thanks.

[Petunia 100]

Does anyone know if I am allowed to invest in a Roth IRA while on disability (private LTD insurance + social security insurance) or invest in any kind of tax advantaged retirement plan?

Thanks.

Marc, you must have earned income to contribute to an IRA. So if you have any earned income this calendar year, then you may invest up to that amount or up to 5k, whichever is less.

If you don't have earned income, then you can open a regular taxable account. Just choose tax-efficient investments. Total stock market funds are a good choice, as are muni bond funds. Or, look for mutual funds with "tax managed" in the title.

Keep in mind, if you have little to no taxable income, then the tax on your investment income will be minimal, unless you are talking about a very substantial sum.