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"Ordinary income" in tax jargon means everything except capital gains. I don't really think you meant to ask that.
In 2009, your annual contribution to an IRA cannot exceed $5000 ($6000 if you are over 50) or the amount of your "compensation income" whichever is less.
So, for example, if you had $1000 in compensation income, you can only put $1000 into an IRA. If you had $1,000,000 in compensation income, you could only put $5000 into your IRA (or $6000 if you are over 50).
What is compensation income? The simplest description is that it is taxable income from your salary/wages, net self-employment, or alimony. The amount shown in Box 1 of your W-2 form minus the amount shown in Box 11 is all considered compensation income.
You can put money from any legal source into your IRA as long as the amount doesn't exceed the limits shown above. You can put money from a birthday present, from a loan, from your paycheck, from your savings account, or from under your mattress into your IRA. It doesn't matter where you get it from, just as long as the amount you put into your IRA is not more than the amount of your compensation income or $5000, whichever is less.
By the way, if you were 70 1/2 or older, you may not contribute to a traditional IRA.
What else can I help you with?
Can I open a Roth IRA if I'm 71?
Yes, you can! As long as you have earned income and don't earn more than the maximum modified adjusted gross income limit, you can contribute to a Roth IRA. Roth IRAs don't carry the same minimum required distribution rule that traditional IRAs do so you can let the account grow indefinitely if you choose. In order to withdraw earnings tax-free, you'll just need to make sure you're over the age of 59 1/2 (which you will be) and the account is open at least five years.
Can I open a Roth IRA if I'm over 65?
You cannot contribute more to your IRA than the amount of your "compensation income." Compensation income is the taxable portion of your wages/salary, net self-employment, and alimony. Any amount shown in box 1 of a W-2 minus the amount shown in box 11 of the same W-2 is automatically considered taxable compensation income. So if you are not doing some kind of work or receiving alimony, you can't contribute. There is no age limit for contributions to a Roth IRA. People over 70 1/2 cannot contribute to a traditional IRA.
How do you personally contribute when carpooling?
Open up your wallet and contribute.
Can you open a Roth IRA if your income is not high enough to be taxed?
YES You Can! When you have earned income, and your MAGI is less than - $166,000 (married filing jointly filers) - $114,000 (single and head of household filer) - $10,000 (married filing separately) You can contribute the lesser of your earned income or $5,000 for 2008. For more information about IRAs see IRS Pub 590, Individual Retirement Arrangements.
How can I open an FSA account?
To open an FSA account, you typically need to enroll in a qualifying health insurance plan offered by your employer. During open enrollment, you can elect to contribute a portion of your pre-tax income to the FSA account, which can be used for eligible medical expenses. Be sure to carefully review the plan details and contribution limits before enrolling.
What do manatees contribute to the environment?
By Keeping Water-Ways Open
Are income tax returns open record?
They are not public record.
What are the bazaars seen in the Cairo?
traditional open-air markets
At 52 what do you need to open a roth IRA?
You need what is called "compensation income." That is taxable income from wages, net self-employment, or alimony. Your Roth IRA contribution for the year cannot exceed your compensation income from the same year. You can still open and contribute to a 2008 Roth IRA until 4/15/2009. Make sure your financial institution clearly understands you are contributing for 2008 and not 2009. For 2008, you need to have Modified Adjusted Gross Income of no more than $169,000 (Married Filing Jointly), $10,000 (MFS), or $116,000 (Single or HoH). See Table 2-1 on page 60 of Publication 590: http://www.irs.gov/pub/irs-pdf/p590.pdf See Worksheet 2-1 on page 62 to Calculate your Modified AGI: http://www.irs.gov/pub/irs-pdf/p590.pdf Note that if your income is too high to make a Roth IRA contribution, you can still make a non-deductible contribution to a traditional IRA if you are under 70 1/2. In 2010, the tax law changes so that everyone is eligible to convert from a traditional IRA to a Roth IRA. The part of the conversion that came from non-deductible contributions is tax-free. So even if your income is too high, you might want to make a non-deductible contribution to a traditional IRA and convert it next year.
When are traditional schools open even on summer break?
Traditional public schools are open for summer school on summer break. A week or two after the start of summer break and a week or two before the start of the school year, schools are often open for teachers and administrators.
What are other advantages of open source code?
Anyone can view edit and contribute to the code
What is one way the government cannot influence income redistribution?
Open Market Policy
