Roth Contribution from ESPP ordinary income after ER?
Starting in 2012 I will have no wage income. However, I still have some ESPP shares, and the 15% discount is taxed as ordinary income when I sell the shares. Does that income qualify for making a Roth IRA contribution up to an equal amount?
For example, say I bought 100 shares in company X through ESPP. It was $100 at the time, and I got it for $85 with the discount. 3 years later I sell it for $110.
100 * $(100-85) = $1500 ordinary income
100 * $(110-100) = $1000 LTCG
Can I contribute $1500 that year to my Roth IRA?
To be clear, I'm talking only about contributing, not converting an existing IRA.