Ask Experts Questions for FREE Help !
Ask
    leekva's Avatar
    leekva Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Jul 11, 2005, 09:03 AM
    Roth IRA Limits
    I contribute to a Roth IRA currently. The amount I contribute is reduced based on my AGI. I have been able in the past to compute the max amount I'm allowed to contribute. However, I plan on getting married this year and I am trying to figure just how this will impact my/our contributions to the Roth IRA.

    We have more or less figured our combined AGI will be about $153K. My AGI will be about $105 with my future wife's about $48K. I'm over 50 so I can use the catch-up contribution, but my wife is not.

    Since the Roth is considered as 'Individual' do we use our own wages, etc. (e.g. any income/dividends/interest) received under our own SSN as the basis for computing AGI?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 29, 2005, 11:48 AM
    Leekva:

    You have to use your combined income of $153K, which means you will have to reduce your maximum contribution ($4,000 + 500 catchup) and your wife's maximum contribution ($4,000) somewhat. You can access IRS Pub 590 from www.irs.gov to determine how much to reduce your contribution.

    Of course, you can contribute the max amount, then withdraw the excess (once you determine what you are allowed to contribute) without penalty as long as the withdrawal is done prior to April 15, 2006.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Probation Violation Time Limits [ 7 Answers ]

I need everyone's advice. I was on probation for three years in the state of Virginia for a DUI related incident from May 2002 to May 2005. I violated my probation, but my probation officer never found out as it occurred in another state. Virginia (DMV) has now found out about it. (in July...

Roth IRA contributions [ 1 Answers ]

I have contributed $4000 in my Roth IRA for 2006. Now I find out that it would be better for me to pay the income tax on an inherited annuity rather than having the estate pay the higher income tax rate. The annuity will be about $175,000, and that would put me over the limit for contributing...

Calculus help on limits [ 4 Answers ]

For what value(s) of k does the limit lim x ->3 (√x) - k / x - 3 exist? thanks =]

Roth ira question [ 7 Answers ]

Hi. Can anyone tell me about penalties and taxes due on a withdrawl from a ROTH IRA at age 58? Account has been open since 1998 when it was rolled over from a 401k and taxes paid on the rollover. Is it just earnings that are taxable? Must you be 59 1/2 to avoid a penalty? Can't seem to get a...

View more questions Search