Simple Tax Question / Roth IRA

Sideonecincy

macrumors 6502
Original poster
Sep 29, 2003
421
0
This is a pretty simple question that I just can't find the answer to, so I figured someone on here probably knows it.

I am looking to open a Roth IRA, but I already filed my taxes for 2011. I meant to do this in 2011 but just never got around to it. So since I already filed my taxes for 2011 and don't want to have to amend them, should I wait until after taxes are due to open a roth IRA or can I open it anytime and have it apply to 2012?

I am planning on just opening it and maxing it out for the year right away. Is this somehow a bad idea?

Thank you!
 

jca24

macrumors 6502a
Jul 28, 2010
821
115
DFW
Yes you can open the roth at any time this year and have it apply for 2012.
 

whoathere

macrumors 6502
Feb 8, 2006
356
2
Rockford, IL
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

If your going to max it out, and put it in an investment, then you'll want to do that sooner rather than later.
 

SuperCachetes

macrumors 6502a
Nov 28, 2010
793
142
Away from you
1. You have a choice of what tax year to contribute under, until April so-and-so. You just want to be sure that you do select "2012" when depositing/contributing right now.

2. Nothing wrong with making one lump sum contribution up to the annual limit - it's $5,000 for most people, more if you are older. Also watch the income limitations: if you are way into the six-figure salary range, you may not be able to do a Roth.
 

ImAlwaysRight

macrumors 6502a
You pay the full tax on a Roth IRA now, so even though you filed your taxes for 2011, I believe you can still open a Roth IRA for 2011. You have until April 15 to contribute to a Roth IRA for the previous tax year.

The salary cap was mentioned for a Roth IRA. For the maximum contribution in 2011, the limits are $107,000 for single individuals and $169,000 for married couples filing joint returns.