Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-06-2007, 12:07 AM
Samatg's Avatar
Administrator
 
Join Date: Jan 2007
Posts: 291
IRS Guidelines for Roth IRA Contributions

Taxpayers confused about whether they can contribute to a Roth IRA should consider guidelines based on the following categories:
  • Income Limits To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). These limits vary depending on your filing and marital statuses.
  • Age There is no age limitation for Roth IRA contributions.
  • Contribution Limits In general, if your only IRA is a Roth IRA, the maximum 2006 contribution limit is the lesser of your taxable compensation or $4,000 ($5,000 if 50 or older). The maximum contribution limit phases out depending on your modified adjusted gross income.
  • Spousal Roth IRA You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.
  • Time Contributions to a Roth IRA can be made at any time during the year or by the due date of your return for that year (not including extensions).
Roth IRA contributions are not tax deductible and are not reported on your tax return. On the other hand, you do not include in your gross income, and therefore are not taxed on, any qualified distributions or distributions that are a return of your regular Roth IRA contributions or that are rolled over into another Roth IRA.
For complete information and definitions of terms, get Publication 590,
Individual Retirement Arrangements. Visit the IRS Web site at IRS.gov, or call 800-TAX-FORM (800-829-3676) to request a free copy of the publication.


Links:
  • Publication 590, Individual Retirement Arrangements (PDF461K)



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.