The number changes almost every year.
To calculate your maximum contribution for 2009, first take the SMALLER of the following two numbers:
1) $5000 (or $6000 if you are age 50 or over).
2) Your taxable compensation income for the year. Compensation income is wages, commissions, tips, net self-employment, and alimony.
Then subtract the amount you contributed to a traditional IRA for the same year from the number above.
For 2009, if you are single and your Modified Adjusted Gross Income exceeds $105,000 or if you are married filing jointly and it exceeds $166,000, then there are further limitations. If you are married filing separately, there is an even more severe limitation.
A Roth IRA calculator will allow you to compare a Roth IRA and a traditional IRA to help you best determine which option you need to be doing to meet your retirement needs.
The calculator is used to calculate the benefits if anything between your normal IRA when you decide to a roth IRA. Roth IRA varies from normal IRA but both are unique to your financial situation.
One could compare traditional IRA to Roth IRA by using the 'Fidelity' website. They have a comparison article between the two including factors such as tax benefits and eligibility.
Yes, the limitation does not apply between a SIMPLE IRA and a Roth/Traditional. However, because a SIMPLE IRA is a "qualified retirement plan" offered by your employer, you may not be able to get a traditional IRA deduction- all depends on your income situation.
The main difference is when you pay income taxes on the money you put in the plans. With a traditional IRA, you pay the taxes on the back end - that is, when you withdraw the money in retirement. But, in some cases, you may escape taxes on the front end - when you put the money into the account.With a Roth IRA, it's the exact opposite. You pay the taxes on the front end, but there are no taxes on the back end.And remember, in both traditional and Roth IRAs, your money grows tax free while it's in the account.There are other differences too. While almost anyone with earned income can contribute to a traditional IRA, there areincome limits for contributing to a Roth IRA. So not everyone can take advantage of them.Roth IRAs are more flexible if you need to withdraw some of the money early.With a Roth IRA, you can leave the money in for as long as you want, letting it grow and grow as you get older and older. With a traditional IRA, by contrast, you must start withdrawing the money by the time you reach age 70½.
As of right now you can contribute up to $5500 each year to a Roth IRA. If you are over 50 years of age, you can contribute an additional $1000 for a total annual contribution of $6500.
Yes, a 75-year-old can contribute to a Roth IRA as long as they have earned income. There is no age limit for contributing to a Roth IRA, unlike a Traditional IRA which has an age limit for contributions.
Yes. An individual may make IRA contributions to both a Roth and aTraditional IRA, providing the combined contribution total does not exceed the contribution limit for the year.
Provided you meet the compensation requirements and the income limitations for each type of IRA, you may contribute to both a Roth and a regular IRA. However, the combined amount may never exceed $5,000 (or $6,000 if you are 50 or older). Therefore, should a 45-year old be eligible and choose to contribute $3,500 to his Roth IRA, the most he could contribute to a regular IRA for the same tax year is $1,500.
no
depends on what investment are in the Roth and what they made
You need to have taxable income at least equal to the amount you contribute to your Roth IRA. If you contribute $5,000, but have only $4,000 in taxable income, you need to pay taxes on $1,000 excess contribution.
Yes.as long as you do not contribute more than your annual limit.
You can contribute to both traditional and Roth IRAs in the same year. However, you total contribution to all IRA plans must not exceed the maximum contribution limit of $5,000 ($6,500 if over 50).
Yes
yes
There is no maximum age for contributing to a ROTH IRA as long as you have earned income. However, you must be under the age of 70 ½ to contribute to a traditional IRA.