Roth IRA and your income?

Question

Well, the rules are if you earn and income under 100,000 as a single. Well, what if you Make a Roth IRA then you land a job making $120,000 a year....after you setup a Roth IRA? Or let's say you end up making it big in music and are selling billion dollar records? Will you still keep that roth IRA?

Answer 1

I think you're confused between be able to contribute to a Roth and having a Roth. You can open a Roth anytime, it is just an investment account. But to be able to contribute to it is another story. Let's say in 2006, you made less than $95k, you will still be able to put $4k in your Roth; then in 2007, you landed a $150k job, and you file that much in your taxes, then you won't be able to contribute anymore to your Roth. However, you still can retain your Roth with the $4k you put in the previous year along with any investment gains you might have made.

Answer 2

You CAN keep your Roth... You simply need to provide proof of what ever the IRS wants to see regarding anything having to do with income.

I have recently been told it is $150,000.oo

This proves to NEVER believe what you hear unless YOU do the research yourself. My tax accountant has even taken on the IRS regarding some of our taxes and the IRS was wrong. It pays to have someone a lot smarter than YOU working for you !!!

: )

Answer 3

Roth or not - the answer is, yes. Because you opened it in the year when you qualified for it. Tax rules in subsequesnt years may prevent you from making contributions ot it. If you qualify again in a given year, you may contribute again.