People over a certain income are not allowed to make any contributions to a Roth IRA. Why? Wouldn't people with high income rather pay the taxes later anyway (as they would do with a traditional IRA)? In other words, doesn't this rule just prohibit people from doing something they'd already rather not do?
2006-09-27 08:51:49 · 3 answers · asked by rainfingers 4 in Business & Finance ➔ Taxes ➔ United States
Mrs. F: in addition to the upper income limit, there's also a yearly contribution limit ($4000 this year). But Roth IRAs are still very, very, worth it! You can always put more money in next year, and the year after that, etc. Contribute the maximum, or as much as you can, every year; you'll be glad later.
2006-09-27 09:04:55 · update #1
The limits are for AGI over $160,000 if married (MFJ) and $100,000 for single folks. I would assume that the idea of having a limit is to give tax breaks to lower income folks and continue to tax the "rich". All of this a political decision by Congress not the IRS.
2006-09-27 09:05:58 · answer #1 · answered by ? 6 · 2⤊ 0⤋
That doesn't sound right. We were thinking of getting one of those sometime in the winter, but we should be able to contribute all we want!
2006-09-27 15:59:23 · answer #2 · answered by GD-Fan 6 · 1⤊ 0⤋
Ask your congressman.
2006-09-27 16:03:39 · answer #3 · answered by Wayne Z 7 · 2⤊ 0⤋