<prompt> Human: I was employed for 5 years, but quit that job in 2015. I am now a full-time student living on federal student loans. I had a 401k from that job that I rolled into a Roth IRA in 2016. Federal student loans arent taxed like income because Ill repay it with interest over time. Roth IRA contributions are from post-tax income. If I take any remaining amount from my loans and invest in my Roth IRA, am I effectively never taxed on this amount? Right now, the average growth rate for the IRA is 12 percent and the student loan rates are between 6 and 7 percent, so it seems more prudent than repaying the loans or saving the money. What are my risks here? Thanks. Edit: uRustedMechanical pointed out that the contributions were restricted to earned income. Contributions from unearned income are subject to a 6 penalty tax for the duration of their time in the fund, making it a bad decision on my part. Definitely not going to do it. Thank you for your help.  <response>: You pay loans back with after-tax money. I think thats the step youre forgetting in this logic. 