New Roth

[Guest DBFROMNVA]

I have already filed my taxes for 2002 and received my refund. Can I open a Roth IRA and place 2002 money in it before 4-15-2003? If I can, do I have to report it to the IRS with an amended tax return? Also, my wife and I each had earnings in 2002 and our combined was less than than $150,000.00. Can we each open a Roth IRA and put in $3,000.00(total of $6,000.00) or do we have to open a joint Roth with a total of $3,000.00.

[John G]

From my older copy of IRS Pub 590:

"Contributions can be made to your IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. "

Therefore you can make contributions for year 2002 until Tuesday April 15. (From a practical perspective, you want to avoid the last minute rush in April.)

There is nothing to report and you do not need to file an ammended return!

There is no such thing as a joint Roth. The "I" in IRA stands for individual. If you qualify by income and filing married jointly, then you can each open up a Roth (separate accounts) and deposit separate checks. You don't need to use the same custodian or make the same investments. Be sure the check designates that the tax year is for 2002. After your first statement arrives, confirm that everything was done correctly... like the correct designation of year. You can also contribute for 2003 at this time if you wish. If you are over the age of 50, you maximum is $3500 due to the "make up" provisions.