Roth IRA contribution limits

#1 03-01-2004, 07:25 PM

ezeppelin[at]msn.com wrote:

- quote -

> My income is highly variable. This year my AGI will be
> somewhere between $60k and $140k.
> I'd like to go ahead and get started contributing to a Roth,
> but I believe the limit for a single person such as myself
> being able to contribute is about $110k.
> So my question is this: What if I add some money to a Roth,
> and then at the end of the year it turns out I've
> contributed more than I'm allowed? How much trouble will I
> be in? Is it a simple matter of selling those shares and
> converting them back to taxable status, or will I be in for
> a big penalty?

Take comfort in knowing that the max for a Roth IRA is
either 3,000 or 3,500 depending on your age (break point is
age 50).

Cheer$,
Harlan Lunsford, EA n LA

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03-01-2004, 07:05 PM

ezeppelin[at]msn.com (ezeppelin[at]msn.com) writes:

- quote -

> My income is highly variable. This year my AGI will be
> somewhere between $60k and $140k.
> I'd like to go ahead and get started contributing to a Roth,
> but I believe the limit for a single person such as myself
> being able to contribute is about $110k.
> So my question is this: What if I add some money to a Roth,
> and then at the end of the year it turns out I've
> contributed more than I'm allowed?

You can "recharacterize" the excess as a traditional IRA
contribution. There's plenty of time to fix this in 2005,
so don't worry about it.

Phil Marti
Topeka, KS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 02-29-2004, 08:18 PM

My income is highly variable. This year my AGI will be
somewhere between $60k and $140k.

I'd like to go ahead and get started contributing to a Roth,
but I believe the limit for a single person such as myself
being able to contribute is about $110k.

So my question is this: What if I add some money to a Roth,
and then at the end of the year it turns out I've
contributed more than I'm allowed? How much trouble will I
be in? Is it a simple matter of selling those shares and
converting them back to taxable status, or will I be in for
a big penalty?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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