Contributions

Contributions to Roth IRAs are more restrictive than traditional IRAs. Contributions to Roth IRAs can only be done if the person wanting to make contributions to Roth IRAs satisfy Roth IRA income test. The following questions on contributions to Roth IRAs are common questions asked about Roth IRA contributions.

Can a Roth contribution be made at any age?

Yes.

Unlike conventional IRAs, roth IRA contributions to a Roth IRA can continue to be made after age 70 ½ if the tax payer or tax payer's spouse has earned income and meets the Roth IRA income eligibility limits.

Are Roth IRA contributions tax deductible?

No.

Roth IRA contributions are never tax deductible.

When can a Roth IRA contribution be made?

Roth IRA contributions can be made at any time during the year or by the due date of the tax return for that year (not including extensions).

Can I contribute to both a traditional IRA and a Roth IRA for the same year?

Yes.

But the total of both IRA contributions (roth IRA contributions and traditional IRA contributions) cannot exceed $4,000 (plus an additional $1,000 if the person is 50 or over) in 2005.

Can I participate in a retirement plan at work and still make a Roth IRA contribution?

Yes.

Retirement plan contributions to employer retirement plans, such as 401k, 403b or SIMPLE plans will not reduce amounts eligible to contribute to a Roth IRA.