I know I have to work for at least $7k in order to max out my Roth, but can I use the $7k I’ve made this year via stock options? Or does it need to be a legitimate job? I want to max out my IRA and have approximately $20k saved up, but I haven’t been working a real job this year because I’m in college. I’m almost 19 years old. I would appreciate any assistance.
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Eligibility to contribute to a Roth IRA is based on earned income, which includes wages, salaries, and self-employment earnings. The source of the money does not affect eligibility, simply having funds doesn’t make you eligible to contribute.
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Since trading is regarded as a job, may I expect to pay fees?
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Trading is only considered a job if you’re a licensed broker. Is that your employment?
If not, stop watching TikTok for investment tips. Trading with your own funds is a hobby or pastime, not a job, as you’re not paid for it and are simply hoping for a better financial future.
The same applies to passive income from rentals. Landlords do real work, but the tax code views passive income as not earned, unless you are a real estate professional with a Schedule C on your Form 1040, or a corporation that provides you with a Form 1120, 1120S, or K-1. Alternatively, if you receive a W-2, it means you are employed.
If you are not eligible to contribute, don’t do it.
However, if you are eligible, say you earn $3,000 refereeing games and receive a W-2 for it, you can use $3,000 from your birthday money for your Roth IRA. There is no direct link between the earned income and the funds you contribute, it’s all just money 
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You need reported earned income on a W-2 or a 1099 to contribute to a Roth IRA. Capital gains do not count as earned income.
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Not totally accurate. Minors are still permitted to make contributions to their Roth accounts while receiving a fair pay below the table. The specific language escapes me at the moment, but it certainly needs to be W-2 or 1099 pay.
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Any earned income that the IRS discovers on a tax return has to be disclosed.
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Income is income, whether it’s from cash tips, under-the-table work, lawn mowing, babysitting, or other sources. If it’s not reported, it’s still considered income that could potentially be reported.