this year? I just became an independant contractor at the end of last year, and I haven't contributed all year. Would the rollover be seen as a contribution, since I was taxed when it changed over???
2007-09-13 09:35:14 · 5 answers · asked by Jennifer G 1 in Business & Finance ➔ Taxes ➔ United States
A direct rollover to an IRA does not count towards (against) your annual maximum contribution limit.
You may take a tax credit for Roth IRA contributions only if your income is less than $25,000 if single or married filing separately; $37,500 if head of household; or $50,000 if married filing joinly. (See IRS Form 8880, http://www.irs.gov/pub/irs-pdf/f8880.pdf ). If not, contributions to a Roth IRA are not deductible.
Contributing to a Roth IRA is entirely voluntary. You are never required to contribute to a Roth IRA.
2007-09-13 12:10:22 · answer #1 · answered by Plea_of_insanity 5 · 1⤊ 0⤋
1) You are never required to contribute.
2) You are still allowed to contribute after a $4000 rollover. Rollovers do not count toward the limit.
2007-09-13 20:15:36 · answer #2 · answered by StephenWeinstein 7 · 1⤊ 0⤋
Contributions to a Roth are not deductible. The benefit with a Roth is that the distributions are fully tax free after age 59 1/2.
2007-09-13 16:44:42 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Rollovers do not count as contributions.
Either way, contributions to a ROTH are not deductible.
2007-09-13 16:41:29 · answer #4 · answered by Wayne Z 7 · 1⤊ 1⤋
No, a rollover doesn't count as part of your contribution limit for the year.
2007-09-13 22:32:58 · answer #5 · answered by Judy 7 · 1⤊ 0⤋