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Roth Ira contributions


Guest bonnie_kelsey@hotmail.com

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Guest bonnie_kelsey@hotmail.com
Posted

I was reviewing my 1040 tax instruction book and discovered I CANNOT take a Roth contribution as a tax deduction. I am wondering if I can still contribute to my Roth this year even if I take the $2,000 deduction for my regular IRA?

Posted

Roths are not tax deductible. The max annual contribution is set for all IRAs combined, not separate limits for Roth and regular IRAs. However, you should know that the limits for the 2002 tax year is $3,000.... or if you are over age 50 the limit is $3,500. These are changes for 2002, the old 2k limit applies to 2001 tax year.

So.... you answer for last year ('01) is 2K has you maxed out, but you could put in more if you are talking about this calender year.

Get a copy of Pub 590 from the IRS which covers the various IRA and ROTH IRA options.

Guest bonnie_kelsey@hotmail.com
Posted

Thank you for the info and I will certainly get the publication to review. The 2002 contribution has not yet been made so I will put my Roth IRA money into there.

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