Looking At The Deadline For A Roth IRA ContributionYou are in a dilemma as to what the definition is for a Roth IRA. You’re not alone and one of the things you might be interested in is when the Roth IRA contribution deadline actually occurs. This and many other things need to be considered when you are thinking about setting up a Roth IRA. This is an investment for your future and you need to be aware of all the pros and cons that go along with a Roth IRA. This article will help you answer some of the questions you may have about this type of IRA contribution. Read further to get a better understanding of what a Roth IRA can do for you and your plans for a happy retirement. There are a few basic IRS guidelines that you must be aware of when you’re investigating the possibilities of setting up a Roth IRA. First of all, you must have taxable compensation which is defined as wages, salary, tips, professional fees and bonuses. Your IRS filing status has a direct affect on the compensation limits allowed. Your age at the time you invest in a Roth IRA does not matter. The maximum amount that you can contribute for 2008 is $5000.00 (plus another $1000.00 if you are age 50 or older.) Remember that your maximum contribution per year depends on your adjusted gross income. If you are married, you can make contributions to a Roth IRA as long as you meet the income requirements. Don’t be overly concerned about a Roth IRA contribution deadline because you can contribute at any time during the year or at least by the due date of the applicable tax year. An important thing to know about Roth IRA contributions is that they are not tax deductible and you do not have to report them on your IRS tax return. You do not have to pay tax on qualified distributions, on distributions that are rolled over into another Roth distribution, or on distributions that are a return of your regular Roth IRA contributions. This makes your investment worthwhile and beneficial to add to your retirement portfolio. Getting a Roth IRA is something that might work well for you, depending on your current age and living situation. There are many resources available that can be used to find out if this type of IRA is right for you. The IRS publication 590 (Individual Retirement Arrangements) is one way to find out all of the pros and cons of a Roth IRA and for you to look at any applicable Roth IRA contribution deadlines. You might also want to go online to IRS.gov or make a phone call to 1-800-TAX-FORM. The IRS provides this publication free of charge. |