Roth contributions

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Murmel
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Joined: Sat Oct 19, 2019 6:24 pm

Roth contributions

Post by Murmel » Sun Oct 20, 2019 8:03 am

Hello!
I am new to this group and probably will have a lot of beginner questions.

One question is:
I know, you have to have income to being able to contribute to your ROTH IRA.
But does that mean, you have income in the same tax year (2019) or income at the time of the contribution (November 2019)?

In my case, I had income until September 2019. And would like to contribute the remaining amount for 2019 to my ROTH.

Thank you for your help!

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Cheez-It Guy
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Re: Roth contributions

Post by Cheez-It Guy » Sun Oct 20, 2019 8:24 am

Income during same tax year. It is not month-specific. You must have "earned income" (not all sources count) equal to or greater than your Roth contribution amount.

Topic Author
Murmel
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Joined: Sat Oct 19, 2019 6:24 pm

Re: Roth contributions

Post by Murmel » Sun Oct 20, 2019 10:06 pm

That is great! Thank you so much. I could not find that information clearly spelt out anywhere.

criticalmass
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Re: Roth contributions

Post by criticalmass » Sun Dec 01, 2019 6:43 pm

Follow up question: A spousal Roth IRA contribution can be made off a spouse doesn't have any income.

But what if a spouse has say $2000 income? Are they limited to a Roth contribution of $2000 or can they contribute the full Roth amount for the year?

CoastalWinds
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Re: Roth contributions

Post by CoastalWinds » Sun Dec 01, 2019 6:45 pm

The full amount

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arcticpineapplecorp.
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Re: Roth contributions

Post by arcticpineapplecorp. » Sun Dec 01, 2019 7:15 pm

all correct answers so far. for corroboration:
Roth IRAs Who Can Contribute?
You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2020 and 2019 limits).

How much can I contribute:
The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2018, $5,500, or $6,500 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.
For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.
For 2020, $6,500, or $7,500 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

What is the deadline to make contributions?
Your tax return filing deadline (not including extensions). For example, you can make 2019 IRA contributions until April 15, 2020.

source: https://www.irs.gov/retirement-plans/tr ... -roth-iras
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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FiveK
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Re: Roth contributions

Post by FiveK » Sun Dec 01, 2019 8:38 pm

criticalmass wrote:
Sun Dec 01, 2019 6:43 pm
Follow up question: A spousal Roth IRA contribution can be made off a spouse doesn't have any income.

But what if a spouse has say $2000 income? Are they limited to a Roth contribution of $2000 or can they contribute the full Roth amount for the year?
The limit for total contributions by a MFJ couple is the lower of
- the sum of the individual contribution limits
- the MAGI for Roth IRA purposes from their MFJ tax return.

criticalmass
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Joined: Wed Feb 12, 2014 10:58 pm

Re: Roth contributions

Post by criticalmass » Mon Dec 02, 2019 9:52 am

FiveK wrote:
Sun Dec 01, 2019 8:38 pm
criticalmass wrote:
Sun Dec 01, 2019 6:43 pm
Follow up question: A spousal Roth IRA contribution can be made off a spouse doesn't have any income.

But what if a spouse has say $2000 income? Are they limited to a Roth contribution of $2000 or can they contribute the full Roth amount for the year?
The limit for total contributions by a MFJ couple is the lower of
- the sum of the individual contribution limits
- the MAGI for Roth IRA purposes from their MFJ tax return.
Thank you for the clear explanation! (Clearer than the IRS docs too).

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