I only earned $2,300 gross income in the year 2006. Am I allowed & if so, how much can I contribute to my Roth IRA for that tax year, providing I do it before April 15th of this year?
2007-01-31 13:48:41 · 1 answers · asked by Tater 2 in Business & Finance ➔ Personal Finance
Yes, you are allowed to contribute up to the max amount for 2006 it is 4k and likewise for 2007, 4k. If you did not contribute for 2006 you have until the deadline to make your 2006 4k contribution. I recommend doing this right away and once you can send somemore to fund the 2007 Roth contribution as well.
Remember Roth IRA contributions are taxed up front so your capital gains are tax free! Make sure to make the most of this great retirement vehicle. The contribution amount changes in 2008 it goes up to 5k. But in the meantime, keep on depositing the max and let compounding work for you. Good luck!
2007-01-31 13:58:25 · answer #1 · answered by momo 3 · 0⤊ 0⤋