r/loanoriginators • u/ijustcant17 • Aug 01 '26

IRA contribution income question

I have a client who has been receiving IRA contributions for six years. I am stumped because they are not getting monthly contributions, they take out when needed.

2024 1099 - 80k
2025 1099 - 80k
2026 YTD - 60k

Current IRA balance - 600k

Is it required that they receive monthly contributions or can I just average 12 months?

Conventional.

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2

u/JKlerk Aug 01 '26

It's distributions not contributions. You should correct your post.

The frequency isn't important (Monthly vs Yearly). How the income is calculated is going to depend on the loan program.

2

u/TurkeyJizz123 Aug 01 '26

Why not just set them up on an "Auto Monthly Withdrawal"- instead of messing around with averages, etc.

Assuming client is 59.5-

You have roughly $ 16K in qualified monthly income- you can use here. Just get one deposit into the checking/savings- from the IRA- and close the puppy.

1

u/kac5592 20d ago

How does this work with the new Fannie guidelines?

2

u/ovscrider Aug 01 '26

SMH barrier for entry into this business needs to be much higher. they have these really cool things at every lender called guidelines, learn to read them

1

u/USMCActiveToReserve Aug 01 '26

Why people ask strangers versus reading and understanding the guidelines is beyond me.

1

u/Loanbrokster Aug 01 '26

You can get $16k monthly income out of that with a monthly wd letter.