Roth IRA Contributions

Each year, you are allowed to make certain amount of Roth IRA contributions. If you make more Roth IRA contributions than that Roth IRA limit, you will have to pay penalties. Roth IRA contributions differ hugely from traditional IRA contributions in that Roth IRA contributions are not tax deductible whereas traditional IRA contributions are tax deductible.

Since Roth IRA contributions are not tax deductible, you will be contributing to your Roth IRA with after tax dollars. If you are converting from a traditional IRA into a Roth IRA, all money rolled over into the Roth IRA account from the traditional IRA account are considered Roth IRA contributions are subject to tax. Roth IRA contributions are taxable at the time of contribution.

Generally, Roth IRA distributions made after 5 years are not taxable if the Roth IRA owner is 59½ or there is a qualifying life event occuring such as death, disability or first time home buyer. Below are Roth IRA contributions and Roth IRA limits resouces and information.

• Roth IRA contribution limits
• Roth IRA 2006 contribution limits
• Roth IRA contributions FAQs