Does the exact money you deposit into a Roth IRA have to come directly from your paycheck? In this video, I explain how the earned-income requirement for Roth IRA contributions actually works, whether money received as a gift can be deposited into the account, and what ultimately determines how much you are allowed to contribute. I also discuss the potential 6% annual excise tax that may apply when someone makes an excess IRA contribution and fails to correct it. Watch my other Roth IRA videos: ▶️ 15 ROTH IRA MISTAKES You Never Want to Make! Pro-Rata Rule and More! youtube.com/watch?v=IJrm51MjIes ▶️ Roth IRA vs. Traditional IRA: Similarities, Differences, and More! youtube.com/watch?v=kUiY-QnrSu8 ▶️ How to Set Up a Backdoor Roth IRA at Vanguard youtube.com/watch?v=oSfHF-WUb6k ▶️ Roth IRA For Kids: EVERYTHING You Need to Know + Step-by-Step Tutorial youtube.com/watch?v=jNChHsAdVls This video is for general educational purposes only...