Simple Tax Question / Roth IRA

Discussion in 'Community Discussion' started by Sideonecincy, Jan 26, 2012.

  1. Sideonecincy macrumors 6502

    Joined:
    Sep 29, 2003
    #1
    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!
     
  2. jca24 macrumors 6502a

    jca24

    Joined:
    Jul 28, 2010
    Location:
    DFW
    #2
    Yes you can open the roth at any time this year and have it apply for 2012.
     
  3. whoathere macrumors 6502

    whoathere

    Joined:
    Feb 8, 2006
    Location:
    Rockford, IL
    #3
    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.
     
  4. SuperCachetes macrumors 6502a

    SuperCachetes

    Joined:
    Nov 28, 2010
    Location:
    Away from you
    #4
    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.
     
  5. ImAlwaysRight macrumors 6502a

    ImAlwaysRight

    Joined:
    Jul 10, 2002
    Location:
    Always in the right place at the right time
    #5
    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.
     

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