On Apr 4, 10:31*am, Zigball <zigb...[at]gmail.com> wrote:
- quote -


You're talking about a traditional IRA here, not a Roth. You have
until April 15 to establish an IRA account and made a contribution to
it that will be deductible on your 2007 income tax return. You can
contribute and deduct $4,000; however, if you or your spouse is an
active participant in an employer pension plan, the amount that can be
contributed and deducted is reduced (phases out) at higher income
levels.

If you want to do this you need to see a tax pro right away -- who may
not be thrilled to talk to you at this late date in the filing season.

Katie in San Diego

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On Apr 4, 8:37*am, "Phil Marti" <prm20...[at]verizon.net> wrote:
- quote -


I stand corrected. Thanks for the catch, guys.

Katie in San Diego

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"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:FmqJj.109$mB3.18[at]nlpi068.nbdc.sbc.com...
- quote -


Only in 1998 was a 4 year spread permitted. That was the first year a
Roth-IRA existed. Except for 2010 (if not changed), a conversion is taxed
ONLY in the year it occurs.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Zigball" <zigball[at]gmail.com> wrote in message
news:97750308-c801-4544-9728-8c144deab825[at]d62g2000hsf.googlegroups.com...
- quote -

All Roth-IRA contributions are POST-TAX. No deduction in, and normally no
income out (penalty situations notwithstanding).

--
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On Apr 4, 1:10*am, Katie <katiej_1...[at]yahoo.com> wrote:
- quote -

Thank you Katie for your answer.

I want to clarify this, so if I took my pre taxed income and
contributed it to a IRA account then the current year tax return I
would record the IRA contributions as income and then take the
deduction for the whole amount contributed to reduce it to zero? Do
you know what the limits are to contribute to an IRA I think $4000 a
year and what are the limits to the deduction I assume less than $4000?

========================================= MODERATOR'S COMMENT:
Please delete all unnecessary material from the prior message when
responding.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark Bole" wrote:

- quote -

You are correct. The 4-year spread was one-time only, in 1998.

- quote -

An amplification since the 2010 "spread" will work differently than the 1998
spread. For conversions done in 2010 only, the income will be split 50/50
between 2011 and 2012 unless the taxpayer elects to recognize all the income
in 2010 [sic all those years].

The elimination of income and filing status restrictions in 2010 is
permanent, but the spread is 2010 only.

That is, if the provision survives until 2010. There are some (I see a hand
waving in the mirror) who think it doesn't have a prayer.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Katie wrote:
- quote -

Katie, I had to double check because your replies are usually very
thorough and authoritative...but I'm pretty sure you cannot spread the
tax effects of tradition-to-Roth conversion over four years, it must be
reported and taxed all in one year.

As law stands now, conversions in 2010 will not be subject to
restrictions such as MFS filing status and high AGI, and the tax
liability will be spreadable over two years...but none of that is true now.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Zigball" wrote:

- quote -

Why? Every brokerage has fine print saying "Don't rely on us for tax
advice." That's because at least their lawyers know they don't know enough,
even if the person you draw on their 800 number thinks he does.

- quote -

No, you're not in another galaxy, which, along with the fact that you have
access to a computer, means you can mosey over to www.irs.gov and get a copy
of IRS Publication 590, which has answers to all your questions. If
something remains unclear after you do your homework, please provide a Pub
590 reference.

The "whys" are because of the law, in most cases sections 408 and 408A of
the Internal Revenue Code, and the regulations in connection with them.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Apr 3, 9:20*pm, Zigball <zigb...[at]gmail.com> wrote:
- quote -


Zigball, these are the general principles:

Contributions to a traditional IRA are deductible in arriving at
adjusted gross income in the year in which the contribution is made --
i.e., they come from pre-tax income. The amount that may be
contributed and deducted is limited, and an individual who is covered
by an employer retirement plan or has income above a certain level may
not contribute to a traditional IRA. When you withdraw funds from a
traditional IRA, usually every dollar you withdraw is taxable as
ordinary income. After the taxpayer reaches age 70-1/2, a specified
minimum amount (the "required minimum distribution," or RMD) must be
withdrawn and included in taxable income each year. Any balance
remaining in an IRA at the taxpayer's death is taxable income ("income
in respect of the decedent") to the heirs.

A Roth IRA is a special kind of IRA that can receive nondeductible
contributions and, if certain conditions are met, all distributions
from a Roth IRA are tax-free. There are no RMDs, so funds may be left
in a Roth IRA and the taxpayer's heirs may inherit the account without
recognizing taxable income.

You can convert a traditional IRA to a Roth IRA by rolling the funds
over. The amount rolled into the Roth account is taxable income;
however, the income and tax liability may be spread over 4 years (it
will be 2 years after 2011).

These are just the general principles. There are a lot of details.
Consult a professional tax adviser before deciding whether you can or
should contribute to a traditional or Roth IRA, or whether you should
roll a traditional into a Roth.

Katie in San Diego

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Apr 3, 5:20*pm, Rich Carreiro <rlc-n...[at]rlcarr.com> wrote:
- quote -

In Addition:

Strange I used to work for a brokerage firm, I should know a little.
Besides is it safe to assume that the IRS assumes that all Roth IRA
contributions are pre-taxed or am I in a galaxy far far away? How are
Roth IRA contributions made? Where does the contributions have to come
from (are there regulations) and are the contributions ever taxed on a
Roth Ira(if so when and how in basis)?

Traditional IRA's, is the contributions taxed twice if you contribute
income from your net income (job)? I need better understandings of
these things I will appreciate any one's help again, thanks in
advance.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Zigball <zigball[at]gmail.com> writes:

- quote -

"Deductible contributions" and "non-deductible contributions"
are terms pertaining to TRADITIONAL IRAs, not Roth IRAs.

You do not report the Roth IRA contributions you make.

--
Rich Carreiro rlc-news[at]rlcarr.com

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In misc.taxes.moderated, Zigball wrote:

- quote -

Yeah, right.

See
http://www.google.com/search?hl=en&q...=Google+Search

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article
<f0beca81-dd6d-492a-aaf6-df2721ff36a1[at]f63g2000hsf.googlegroups.com> ,
Zigball <zigball[at]gmail.com> wrote:

- quote -

There's no such thing as deductible contributions to a Roth IRA. Only
regular IRAs allow you to deduct contributions, if you're not covered by
a retirement plan at work or your income is below a certain amount.

Are you actually concerned with converting a regular IRA to Roth? In
that case, the amount of deductible contributions to the original IRA
affects the tax you pay during the conversion -- it's taxed similarly to
withdrawing from the IRA, except there's no penalty for early withdrawal.

Just follow all the instructions for Form 8606 and the right thing
should happen.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hello All,

I am trying to figure out the Roth IRA for tax purpose. Is there
anyone who can give me understanding for a 1040 tax return. I found
that non deductible contributions and deductible contributions make a
difference with Roth IRA contributions, in any case will any of these
contributions be reported on a 1040 tax return. I also know that the
custodian is responsible for repoting non-deductible roth ira
contributions to the irs. Please explain in as much detail as
possible, thanks in advance.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >