| |
| |
|
Personal Finance Information |
|
|
|
Roth IRA Contributions - IRS Rules
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 during the year). $110,000 - Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the 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, the maximum 2005 contribution limit is the lesser of your taxable compensation or $4,000. For individuals age 50 or older, the 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 $0-$10,000 - Married Filing Separately (and you lived with your spouse at any time during the year) $95,000-$110,000 - Single, Head of Household, or Married Filing Separately (and you did not live with your spouse) Contributions to Spousal Roth IRA You can make contributions to a Roth IRA for your spouse provided you meet the income requirements. When to Make Contributions 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. The Roth IRA is an incredibly valuable retirement vehicle since distributions are made tax-free. If you are considering retirement planning, make sure to investigate the Roth. Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
MORE RESOURCES:
Personal Finance Author Offers Expert Analysis of Why Minorities ... - BlackNews.com (press release)
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
Saving Money - Are You Doing Enough? It is estimated that we, as consumers, waste an average of 30% of our paychecks on items we don't need or pay way too much for the items we buy. Since 1990, spending is up 30% and debt is up an astounding 80%. Do You Really Need the Power of Money Management Software? I have been a loyal user of Quicken(R) for more years than I can remember. But a conversation the other day with my youngest son started me wondering whether or not I really need money management software. Can You Afford Not To Look After Your Personal Finances? Investing is a subject a lot of people don't want to think about. And there is good reason for that. Identity Theft - More Tips on How it Can Be Avoided Recent security breaches at several credit card companies continue to worry Americans, as stolen financial information can lead to identity theft. Identity theft occurs when someone obtains your Social Security number and/or other vital information and uses it to pose as you. Bank On It: Places to Hide and Invest Money Today I passed a thermometer at a bank that read 110 degrees, but I am not telling you that to show you how hot it was. I am telling you that because this bank really needs to fix their thermometer. Eight Ways To Sink Yourself Financially 1. Don't focus on your finances. How Check 21 Affects You The Check 21 Law is the new federal law for financial institutions and has taken effect last October 28, 2004.Before the Check 21 law was enacted, your paper check had to be physically transported from where the check was paid out before it could be deposited to the financial institution. 10 Money-Saving Tips 1. If you have your haircut every 3 weeks, try going 4 or 5 weeks in between haircuts. What Happens if You Die Without Making a Will If you die without making a Will in the UK, the state will decide who gets what and how much, so those who you would want to benefit may get far less than you hoped.Your estate (your property and all belongings) are frozen and become subject to the law of intestacy. Budgeting: A Tough Love Way to Handle Your Household Budget Developing and living by a household budget is by far the best way to get your expenses under control which, in turn, can mean a much less stressful life.However, many families find it very difficult to stick to a budget. Succession Planning Have you ever thought about what you are going to leave your children when you pass from this earth? Wouldn't it be a great feeling to be able to give them a really good head start in life - without actually spoiling them?It really doesn't matter how old you are, it's something that you need to be thinking about and planning for now. In the process of planning your inheritance and blessing your children, you are really making YOUR life better and more financially secure because you'll enjoy these benefits before you pass them on. Benefits of Personal Finance Software In this age of information, keeping track of your finances does not mean an archaic jumble of ledgers, calculators, and papers filled with calculations in chicken scratch. Now everything can be taken care of on your computer through personal finance software. Check Facts and Figures Are you a check fanatic? Don't worry, you aren't alone. Millions of consumers write checks every year. How Electronic Checks Work - Will Paper Checks Eventually Go Away? Traditional checks probably won't disappear anytime soon, but processing checks electronically is sure to continue! Have you ever been asked to fill out your account and routing number when paying for something online or over the phone - or have you provided a paper check to pay for something and it is given back to you after it is run through a machine? Did you scratch your head like I did the first time that happened?Here is how electronic check conversion works. Instead of writing out a check the old-fashioned way, the new way of using checks use digital signatures for signing and endorsing and have digital certificates to authenticate the bank account. Understanding Your Finances Can Give You Power And Choice What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. Chex Systems - Why Every American Needs To Guard His Checking Account With His Life Most Americans have been brought up to be concerned about a good personal credit rating, because of the role a positive rating can play in your long term plans; purchasing a home, buying a car, getting a business loan, etc. They have also been made to understand that the premier organizations that pretty much hold the key to their financial futures are Equifax, TransUnion and Experian. Take Control and Master Your Kitchen Those who keep a watchful eye on where their money is spent, have long conquered the kitchen woes. No last minute panic trips to the market. Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking Doesn't it seem like the only impressive numbers we've seen this summer are the digits on the thermostat and the unaffordable prices of homes? Real estate has been excruciatingly hot for the past few years, but getting in the market now puts you in the high-risk category for a heat stroke if the market decides to cool off this year.So if a real estate induced stroke doesn't appeal to you and the stock market's roller coaster ride gives you motion sickness, it's very likely that you as a health-conscious investor are sitting on a stash of cash collecting an anemic rate of interest. 10 Tips to Make Sure Your Financial Budget Will Succeed You've analyzed your past expenses, put them into spreadsheets, loaded Quicken with all of your data and come up with a budget. Now what? The tough part! You actually have to stick to your budget and put your plans into action. If All Things Are Possible, Why Cant I Balance My Checkbook? For me, the most terrible time of each month is the day our bank statement comes. We commonly call it BSS (Bank Statement Syndrome).
|
| home | site map |
| © 2006 |
