Roth IRA, Traditional IRA, 401K » contribute http://www.iraroth.net IRA Questions and Answers Tue, 17 Jan 2012 00:09:43 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Does how much you contribute into a roth IRA, take that much away from your taxible income? http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/ http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/#comments Mon, 12 Sep 2011 01:43:24 +0000 admin http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/ Question by B. Cummings: Does how much you contribute into a roth IRA, take that much away from your taxible income?
For example if I contribute $ 2000 into a roth IRA, and had a taxable income of $ 35,000 would it now be $ 33,000 of taxible income?

Best answer:

Answer by engineer50
No. Roth contributions are made with after-tax dollars. There is no deduction from income.

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]]> http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/feed/ 2 Q&A: Can I contribute to individual roth ira and 401k roth ira at the same time ? http://www.iraroth.net/2011/08/qa-can-i-contribute-to-individual-roth-ira-and-401k-roth-ira-at-the-same-time/ http://www.iraroth.net/2011/08/qa-can-i-contribute-to-individual-roth-ira-and-401k-roth-ira-at-the-same-time/#comments Tue, 16 Aug 2011 18:44:24 +0000 admin http://www.iraroth.net/2011/08/qa-can-i-contribute-to-individual-roth-ira-and-401k-roth-ira-at-the-same-time/ Question by tax_question: Can I contribute to individual roth ira and 401k roth ira at the same time ?
I’ve contributed the maximum allowed for the 401k roth ira ($ 15500). Can I contribute another ($ 4500-$ 5500?) to an individual roth ira account? Or any other individual ira account in the same year?

Best answer:

Answer by QandA
Yes, I think the roth ira contribution is 4000. There is an income limit, so as long as you don’t make more than the limit you can

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]]> http://www.iraroth.net/2011/08/qa-can-i-contribute-to-individual-roth-ira-and-401k-roth-ira-at-the-same-time/feed/ 4 How much I am allowed to contribute to my ROTH IRA as a married couple? http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/ http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/#comments Mon, 18 Apr 2011 22:25:12 +0000 admin http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/ Question by Cindy16: How much I am allowed to contribute to my ROTH IRA as a married couple?
My husband and I currently have one ROTH IRA under my name.
I also have 401k at my job, and he has his 401 at his job.
I am wondering could he also contribute to an ROTH IRA?
If so, what is the limits for him?

Best answer:

Answer by Scout
Depending on your age. If you are over 50, then you can contribute $ 6000 each as long as you have made at least $ 12,0000 in income. If you are under 50, then the max is $ 5,000 each.

Now if you make more than 166,000 as a couple, then those limits are less.

If you do make over $ 166,000 then I would make a trad ira contr and then convert to a roth.

If you do make over $ 166,000 I would always talk with a tax advisor on anything that you do, especially when it comes to roths.

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]]> http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/feed/ 1 Contribute to ROTH or exclude foreign income‏ http://www.iraroth.net/2011/04/contribute-to-roth-or-exclude-foreign-income%e2%80%8f/ http://www.iraroth.net/2011/04/contribute-to-roth-or-exclude-foreign-income%e2%80%8f/#comments Fri, 08 Apr 2011 20:29:12 +0000 admin http://www.iraroth.net/?p=483 I am a US citizen, working (since 4 years ago) as a teacher in China. I earn $40000 per year and this income is excluded from my tax return. I am taxed in China, so I presume my accountant did this exclusion for me so I don’t pay taxes in the US for this income.

I have learned that I cannot use this income to contribute to a ROTH-IRA.

My question is: should I go back on the decision to exclude this income from US taxes? This would mean I have to pay taxes on it. But it would let me contribute $5000 to the ROTH.

Which one is better to have? A ROTH with the tax free compounding that it brings, or a higher income out of which I cannot contribute to a ROTH (but I can contribute to other, taxable vehicles)?

Thank you!

]]> http://www.iraroth.net/2011/04/contribute-to-roth-or-exclude-foreign-income%e2%80%8f/feed/ 0 Can I contribute to a Roth IRA if my earned income is outside the US? http://www.iraroth.net/2011/03/can-i-contribute-to-a-roth-ira-if-my-earned-income-is-outside-the-us-2/ http://www.iraroth.net/2011/03/can-i-contribute-to-a-roth-ira-if-my-earned-income-is-outside-the-us-2/#comments Fri, 11 Mar 2011 22:25:19 +0000 admin http://www.iraroth.net/2011/03/can-i-contribute-to-a-roth-ira-if-my-earned-income-is-outside-the-us-2/ Question by Clutchitude: Can I contribute to a Roth IRA if my earned income is outside the US?
I have both earned and unearned (dividend, investment, interest) income. My earned income is excluded from my US tax return since I’m physically outside the US. Can I still contribute to a Roth IRA?
Thanks, I thought so. I also assume I have to exclude either all or none of my foreign-earned income if it’s below the threshold.

Best answer:

Answer by Rob
Under the circumstances you have described No you cannot contribute to a Roth or a Tradional IRA

If your Foriegn Earned Income is excluded from your Tax return, it is not considered earned income for the purposes of contributions to either a Traditional or Roth IRA. You can only contribute if the earned income is taxable income.
See Publication 590
Who can contribute and the definitions of what is considered not taxable compensationhttp://www.irs.gov/publications/p590/ch01.html#d0e1025

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]]> http://www.iraroth.net/2011/03/can-i-contribute-to-a-roth-ira-if-my-earned-income-is-outside-the-us-2/feed/ 2 Retirees hope to travel, contribute to college funds http://www.iraroth.net/2010/09/retirees-hope-to-travel-contribute-to-college-funds/ http://www.iraroth.net/2010/09/retirees-hope-to-travel-contribute-to-college-funds/#comments Mon, 13 Sep 2010 11:02:16 +0000 admin http://www.iraroth.net/2010/09/retirees-hope-to-travel-contribute-to-college-funds/ Retirees hope to travel, contribute to college funds
Jeff and Debbie are new retirees. Both in their early 60s, they know they need to change their investment strategy from an accumulation phase to one that delivers a steady stream of income. They hope their investments can supplement…

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]]> http://www.iraroth.net/2010/09/retirees-hope-to-travel-contribute-to-college-funds/feed/ 0 Is there a max amount you can contribute to 2 seperate 401k accounts if you are married filing joinly? http://www.iraroth.net/2010/07/is-there-a-max-amount-you-can-contribute-to-2-seperate-401k-accounts-if-you-are-married-filing-joinly/ http://www.iraroth.net/2010/07/is-there-a-max-amount-you-can-contribute-to-2-seperate-401k-accounts-if-you-are-married-filing-joinly/#comments Fri, 09 Jul 2010 00:10:52 +0000 admin http://www.iraroth.net/2010/07/is-there-a-max-amount-you-can-contribute-to-2-seperate-401k-accounts-if-you-are-married-filing-joinly/ My wife’s company just added a 401k and I am considering contributing to it but was wondering if there are limits to max 401k contributions if we file married/jointly? I currently max out my 401k account and I know with our combined income status IRA contributions are no longer tax deductible so I am worried adding to her 401k will bring the same limitation.

]]> http://www.iraroth.net/2010/07/is-there-a-max-amount-you-can-contribute-to-2-seperate-401k-accounts-if-you-are-married-filing-joinly/feed/ 5 What is the age limit for IRAs contributions? http://www.iraroth.net/2010/03/what-is-the-age-limit-for-iras-contributions/ http://www.iraroth.net/2010/03/what-is-the-age-limit-for-iras-contributions/#comments Sun, 21 Mar 2010 19:03:23 +0000 admin http://www.iraroth.net/2010/03/when-can-one-no-longer-invest-in-iras/ Hi. I heard somewhere that you can contribute to IRAs until you are 70,5 years of age.Is this true? If yes, what is the maximum you can contribute to the IRAs?Thank you.

]]> http://www.iraroth.net/2010/03/what-is-the-age-limit-for-iras-contributions/feed/ 6 Is it possible to have Roth and Traditional IRAs at the same time? http://www.iraroth.net/2010/03/is-it-possible-to-have-roth-and-traditional-iras-at-the-same-time/ http://www.iraroth.net/2010/03/is-it-possible-to-have-roth-and-traditional-iras-at-the-same-time/#comments Thu, 18 Mar 2010 23:46:31 +0000 admin http://www.iraroth.net/2010/03/can-you-have-both-a-roth-and-traditional-ira/ Last year my income went over the limit of Roth IRA, so I wanted to open a Traditional IRA account, while keeping the Roth at the same time. Is it OK to do that? Can I contribute to the Roth account while having Traditional IRA? Thank you in advance.

]]> http://www.iraroth.net/2010/03/is-it-possible-to-have-roth-and-traditional-iras-at-the-same-time/feed/ 4 Do I have to file anything in my taxes if I didn’t contribute to Roth Ira? http://www.iraroth.net/2010/03/do-i-have-to-file-anything-in-my-taxes-if-i-didnt-contribute-to-roth-ira/ http://www.iraroth.net/2010/03/do-i-have-to-file-anything-in-my-taxes-if-i-didnt-contribute-to-roth-ira/#comments Thu, 18 Mar 2010 01:10:39 +0000 admin http://www.iraroth.net/2010/03/if-i-did-not-invest-anything-or-contribute-to-our-roth-ira-in-2009-do-i-need-to-file-it-in-our-taxes/ I have around 40K in funds and Roth Ira, if I didn’t contribute anything to Roth Ira, do I still have to file anything because I have it?

]]> http://www.iraroth.net/2010/03/do-i-have-to-file-anything-in-my-taxes-if-i-didnt-contribute-to-roth-ira/feed/ 1