Unfortunately, the answer to this question is no. In order to contribute to, and follow Roth IRA rules, you must do so with earned income. Generally, any money that is reported on your W-2 form is considered earned income. This does not include pension payments, interest, rental income, Social Security benefits, dividends or capital gains. Alimony can be considered earned income and can be contributed to the account.
By Rocco Beatrice, CPA, MBA