money ? ira contribution 55 yrs old want to increase my contribution?

Question

should i claim 1 on my w4 form for 2007 to have less taxes taken from my paycheck each week and put that $ in my ira account which will put more in my account and i will have less taxes to pay on myincome . I dont want to end up owing more taxes next tho.

Answer 1

You can contribute up to $5,000 to your IRA account in 2007 since youre over the age of 50. You didnt mention what type of IRA account you have, but you will not receive any tax deduction if this is a Roth IRA. You would get a tax deduction if youre contributing to a traditional IRA, assuming you meet all other requirements.

If youre worried about owing taxes at the end of the year, you could always keep your withholdng the same for 2007. You have until the filing date of your tax return to make an IRA contribution. So you could contribute for 2007 up until April 15, 2008. This gives you time to prepare your tax return and see what your tax liability is with and without the IRA deduction.

Answer 2

My wager you recommend money (not bills). maximum folk have a million ROTH IRA account which you may contribute to many diverse money. I actually have a American money Roth and picture there is approximately 15 or greater diverse money i will placed money into. All I do to take a place in a clean fund is tell American money to place X money in that fund. The economic advisors makes the money on how lots you're making contributions not in line with what you're invested in. you are able to log into your on line American money account and notice what money you're presently making an investment in and what money you're eligible to take a place it.

Answer 3

You did not give enough information to advise you about what to claim on your W-4. The link below is a calculator on the IRS website to help determine what to claim. I am single, age 36, and have 1 job. If I claim 2 on my W-4, I come within $100 +/- when I file my tax return.