2006-10-31 12:44:03 · 4 answers · asked by first-time homebuyer 1 in Business & Finance ➔ Personal Finance
If you estimate next year's income above the limit, you cannot contribute to a Roth IRA in 2007. But you can contribute to a non-deductible IRA. As a tip, if you have a 401K, you can increase your contribution to it to decrease your income. Contribute enough to the 401K to decrease your income so that you can contribute to the Roth IRA in 2007.
2006-10-31 15:21:58 · answer #1 · answered by Steve R 6 · 0⤊ 0⤋
The eligibility rules are on a year by year basis.
If your income allows you to contribute in 2006, then you're fine.
If your 2007 income does not allow you to contribute, then you won't be able to make contributions to a Roth in 2007 (your 2007 income has no bearing on your 2006 contribution...that money stays in the Roth...you just can't put any new money in).
2006-11-01 00:16:10 · answer #2 · answered by derek 4 · 0⤊ 0⤋
I would open one regardless. If your income increases and you become eligable to participate in an employers IRA then just start one there and contribute at least the amount that they match , if any. You can get this inf. from the Financial Institution that you are opening the Roth with or it should be covered on the net under Roth IRA guidelines. Good luck.
2006-10-31 12:54:20 · answer #3 · answered by MISS-MARY 6 · 0⤊ 0⤋
Under current law, no. If you are over the income limit it 2007, no contribution is allowed in 2007.
2006-10-31 14:12:13 · answer #4 · answered by Jim H 3 · 0⤊ 0⤋