Comments on: What happens to a Roth IRA when you make too much money? http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: makg http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/comment-page-1/#comment-136 makg Wed, 09 Dec 2009 09:13:13 +0000 http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/#comment-136 The following article might help you: http://www.kiplinger.com/columns/ask/archive/2007/q0301.htm I think the answer is that you can keep the Roth from prior years (when you were not over the limit) and whatever had been earned by those funds, but would have to roll over the contributions from the year in which you went over the limit. (And you've have to do it soon enough to avoid a penalty.) Hope this helps! The following article might help you:

http://www.kiplinger.com/columns/ask/archive/2007/q0301.htm

I think the answer is that you can keep the Roth from prior years (when you were not over the limit) and whatever had been earned by those funds, but would have to roll over the contributions from the year in which you went over the limit. (And you’ve have to do it soon enough to avoid a penalty.)

Hope this helps!

]]> By: Financial JUSTICE http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/comment-page-1/#comment-135 Financial JUSTICE Wed, 09 Dec 2009 09:07:48 +0000 http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/#comment-135 Basically, you won't be able to contribute to a Roth IRA if you earning a high income (somewhere above $114,000 if single) or $166,000 if married filing jointly), but you can still keep it and let it grow tax-deferred. In 2010, the tax law changes where any working citizen can open it, no matter how much income you make. If your income is above those limits I mentioned, you can open a Traditional IRA. After 2010, roll the Traditional IRA into a Roth IRA. Basically, you won’t be able to contribute to a Roth IRA if you earning a high income (somewhere above $114,000 if single) or $166,000 if married filing jointly), but you can still keep it and let it grow tax-deferred. In 2010, the tax law changes where any working citizen can open it, no matter how much income you make.

If your income is above those limits I mentioned, you can open a Traditional IRA. After 2010, roll the Traditional IRA into a Roth IRA.

]]> By: src50 http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/comment-page-1/#comment-134 src50 Wed, 09 Dec 2009 08:42:34 +0000 http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/#comment-134 Nothing happens to the existing Roth. It just affects your eligibility to make additional contributions. Nothing happens to the existing Roth. It just affects your eligibility to make additional contributions.

]]> By: v b http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/comment-page-1/#comment-133 v b Wed, 09 Dec 2009 07:46:59 +0000 http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/#comment-133 Nothingyou say makes any sense. If you have less than $5000 of income, yeah, it would better to put the income into a Roth than a traditional IRA because a deduction would be worthless to you. If in a following year you have, say, $20,000 of income, then yes you can ALSO open a tradtional IRA, put the money in there and take a deduction. The issue is that you have 2 accounts. The $5000 you put in can go into 1, the other, or any combination as long as the total is not more than $5000. The Roth continues, you hope to grow. (By the way, IRAs of all flavors do not have 'captial gains'--if they are taxed, it's ordinary.) Nothingyou say makes any sense.

If you have less than $5000 of income, yeah, it would better to put the income into a Roth than a traditional IRA because a deduction would be worthless to you.

If in a following year you have, say, $20,000 of income, then yes you can ALSO open a tradtional IRA, put the money in there and take a deduction.

The issue is that you have 2 accounts. The $5000 you put in can go into 1, the other, or any combination as long as the total is not more than $5000.

The Roth continues, you hope to grow. (By the way, IRAs of all flavors do not have ‘captial gains’–if they are taxed, it’s ordinary.)

]]>