Tuesday, December 5, 2006

Roth IRA

Look before you leap.
You can't convert from a regular IRA TO a Roth IRA if you make over $100,000 (and the conversion amount counts toward the $100,000)

You can still make contributions to a Roth IRA, subject to phase-out rules unless:
you try to contribute more than your 'earned' income
you try to contribute more than the maximum allowable amount.

Your contribution is further restricted by phase-out rules which kick in if you make between $ 150,000 to $ 160,000 (completely phased out at $ 160,000--so no contribution is allowed if you make over $ 160,000.

You need to check it out with your tax advisor and your broker to make sure since the above is only general information that must be properly interpreted

1 comment:

hilthomas said...

Thanks for the information.