Roth IRA Contributions

Written by Richard A. Chapo


Confused about whether you can contribute to a Roth IRA? Try using these simple rules:

Income

To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

$160,000 Married Filing Jointly. $10,000 Married Filing Separately (and you lived with your spouse at any time duringrepparttar year). $110,000 Single, Head of Household, or Married Filing Separately (and you did not live with your spouse duringrepparttar 148237 year).

Age

There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.

Contribution Limits

In general, if your only IRA is a Roth IRA,repparttar 148238 maximum 2005 contribution limit isrepparttar 148239 lesser of your taxable compensation or $4,000. For individuals age 50 or older,repparttar 148240 contribution limit is $4,500

The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

$150,000-$160,000 Married Filing Jointly

Need a Copy of Your Tax Return Information?

Written by Richard A. Chapo


Taxpayers have two easy and convenient options for getting copies of their federal tax return information tax return transcripts and tax account transcripts by phone or by mail.

A tax return transcript shows most line items fromrepparttar tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules. It does not reflect any changes you, your representative orrepparttar 148231 IRS made afterrepparttar 148232 return was filed. In many cases, a return transcript will meetrepparttar 148233 requirements of lending institutions such as those offering mortgages and student loans.

A tax account transcript shows any later adjustments either you orrepparttar 148234 IRS made afterrepparttar 148235 tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use