I am married, age 57, file a joint tax return and make $65,000. I am a participant in a 401(k) plan at work and put $5,000 into my own traditional IRA. Can I set up a Roth IRA? The rules say if it was more than $110,000, you cannot make any contribution. In order for any earnings withdrawal to be tax free, the distribution has to be a qualified distribution. Unlike a traditional IRA, which does not allow contributions past age 70 1/2, Roth IRAs have no age limitations. You can continue to contribute to your Roth as long as you have compensation. Then assuming this five year rule is satisfied, you can take out money tax free if you are over age 59 1/2, disabled, or to buy a first home for yourself, your spouse, children or grandchildren ($10,000 maximum). After 2009, these limitations don't apply and you are good to go. If you are talking about a tax year before 2010 and your adjusted gross income exceeds $100,000 or you are married and file a separate return, you cant convert your traditional IRA to a Roth. Not in the tax year in question. In your case, you have made the maximum IRA contribution. Distributions before age 59 1/2 are subject to a 10% premature penalty tax.
what is the maximum 401k contribution Your Roth IRA consists of two elements: your contributions and earnings. Here are five tough questions.
1. I have an existing traditional IRA and I want to roll it over to a Roth IRA. Is this possible?
2. I am 72 years young and still working. Can I set up a Roth IRA?
Credit: Fred R Childers Photography@flickrI am 55 and have had my Roth IRA for 3 years. I just went on disability and need to withdraw a good portion of it. Is the withdrawal taxable? And since I am not 59 1/2 do I have to pay the 10% penalty tax? How well do you know Roth IRAs?
ira contribution limits 2010 However, this tax only applies if the distribution is includable in income. If you were married and your modified adjusted gross income was over $160,000, no contribution would have been possible. I am single and my modified adjusted gross income for 2006 was $115,000. I have an existing Roth IRA. Can I make a contribution for 2006? In your case, you qualify for one of the exceptions: disability.
