How much can I contribute to an IRA?
440773
There are different types of IRAs.\n\nThe maximum limits are: (figures for year 2005)\nSEP IRA - 100% of earned income or $40,000 whichever is lower\nROTH IRA - 4,000 or 4,500 if over 50\nTraditional IRA - 4,000 or 4,500 if over 50\nSimple IRA - 10,000\n\nHowever, there are limitations on the contribution if your income is too high or if you're qualified to contribute to an employer retirement plan.\n\nTry these links:\nhttp://www.fool.com/money/allaboutiras/allaboutiras09.htm\nhttp://www.irs.gov/publications/p590/index.html
606169
Roth IRA utilizes after tax money. You can contribute up to $3000 annually. This type of investment produces tax free income later in life. Long term savings Great idea!\n\n\nConventional IRA. Uses pre-tax money. shelters some of your income. \nMaximum contribution allowances change. Check current rules.\nGo to: clarkhoward.com for lots of info
1132215
You need to start by reading what the IRS says about an IRA, see below).  From personal experience, if you don't have an IRA account yet, I believe that it would be better to set up a ROTH IRA, but that is up to you and your needs.\n\nFrom the IRS site:\n\nAn individual retirement arrangement, or IRA, is a personal savings plan which allows you to set aside money for retirement, while offering you tax advantages. You may be able to deduct some or all of your contributions to your IRA. Amounts in your IRA, including earnings, generally are not taxed until distributed to you. IRA's cannot be owned jointly. However, any amounts remaining in your IRA upon your death can be paid to your beneficiary or beneficiaries.\n\nTo contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year and you, or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self–employment. In addition, taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.\n\nCompensation does not include earnings and profits from property, such as rental income, interest and dividend income or any amount received as pension or annuity income, or as deferred compensation.\n\nPlease refer to Publication 590 for information on the amounts you will be eligible to contribute to your IRA account.\n\nIf you, your spouse, or both of you are covered by a qualified retirement plan, your IRA deduction may be reduced or eliminated, depending on the amount of your Modified Adjusted Gross Income and your filing status.\n\nFigure your deduction using the worksheets in the Form 1040 Instructions or Form 1040A Instructions or in Publication 590. You cannot claim an IRA deduction on Form 1040EZ; you must use either Form 1040A (PDF) or Form 1040 (PDF). Form 8606 (PDF) should be attached to your return if any of your IRA contributions are not deductible. If both you and your spouse qualify, each of you may contribute to separate IRAs.\n\nThe deadline for making a contribution to a traditional IRA for the year is the due date of your return, not including any extensions of time to file.\n\nYou may choose to take the deduction on a return filed before the contribution is actually made, provided you make the contribution by the due date of that return, not including extensions.\n\nAmounts you withdraw from your IRA are fully or partially taxable in the year you withdraw them. If you made only deductible contributions, withdrawals are fully taxable. If you made any non–deductible contributions, withdrawals are partially taxable. Use Form 8606 to figure the taxable portion of withdrawals.\n\nAmounts you withdraw before you reach age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distribution amounts by April 1st of the year after you reach age 70 1/2. These additional taxes are figured and reported on Form 5329 (PDF). Refer to Form 5329 Instructions for exceptions to the additional taxes. For information on Roth IRA contributions or distributions, refer to Topic 309 and Topic 428. For information on conversions from a traditional IRA to a Roth IRA, refer to Publication 590.\n\nMore information on IRAs, including information on tax–free transfers and rollovers, is available in Publication 590, Individual Retirement Arrangements (IRAs).
826571
Individual Retirement Account, if your money is before taxes you can contribute to a traditional IRA, this means you earn interest on the untaxed money. You are taxed when you make take the money out at retirement. Roth IRA, you take money that has already been taxed and are able to draw from it at retirement, without taxes. This is rumored to have been named for Ira Cohen, an IRS actuary who was working with them back in 1974. You can go to just about any bank, credit union, or find a financial advisor to explain in detail all aspects, what is allowed, what is not allowes (such as drawing out your money before age 59.5).
270583
Start young, no later than eighteen.  Invest in a mutual fund- Washington Mutual has some nice ones- 100$ per month.  When you can afford it put in more.  Then, open a Roth IRA and max the contributions (currently $4000 per year)- trade a little stock (no more than 30% of you total investments).  You'll easily get to a million by the time you are 60.
28144
Does your employer have a 401k?  Make sure to contribute enough into it that you are getting the full match.  Then start a Roth IRA.
151098
you can always have an ira, even with a 401k. i suggest a roth ira with 1 year renewals. drop at least $500 in every year, more if you can up to the max (about $4,000 for married)
1157487
Paula M is WRONG.\nYou can have all 3.  As VinTek said, your combined contributions in both Traditional and ROTH IRA cannot exceed $4000/tax year.  You can spread this $4000 across any number of accounts you want.\n\nROTH IRA is NOT NECESSARILY better than Traditional IRA as VinTek implied.  For tax purposes, if you want to bring down your AGI, and if you're eligible ( since you're married - filing seperately/Jointly...Your AGI etc. ), you may prefer Traditional IRA today instead of TAX FREE advantage of ROTH IRA down the line.\n\nIf you have patience, you might want to go thru' the link below:\nhttp://www.401khelpcenter.com/2006_limits.html\n\nAlso check out http://www.401khelpcenter.com/
57714
This is just my opinion :)...\n\n401K reasonable. Couple of things may happen...where the company contribution goes and where your contribution goes. Also, generally takes 3 to 5 years to be fully vested so you "get" the entire company contribution. If you go this way, take advantage of the maximum employer contribution. It's free money!\n\nROTH IRA  Taxed before you put it in so you aren't taxed when you take it out (Traditional IRA's are the exact opposite). Suggest you contact a broker, start a monthly contribution to a ROTH in a solid mutual fund. A good broker will sit with you and discuss your risk tolerance.\n\nIf you can afford to do a 401 and an IRA, do both.\n\nRegardless of what plan you choose, get started now and make monthly contributions.
106523
Your Grandchildren can only invest earned income in a Roth IRA. If they have a paper route or some other job, they can contribute to the IRA. Technically, you can't put money into an IRA for them. What you can do to encourage them to invest the money they are earning is to give them cash gifts equal to the amount they invest.
38552
No it is not to late to contribute to a Roth IRA for the 2005 year. You have intil April 17th this year. Because of the 15th falling on the weekend. Just remember do not contribute more than 3000 a person for the year otherwise there will be a penalty.
274365
A Roth IRA is an investment of after-tax money.  The current contribution limit is 4K a year.  You may withdrawl the money you have contributed at any time, for any reason without taxes or penalty.  \n\nAfter 5 years you may also withdraw the earnings for qualified expenses such as a first home purchase or educational expenses without penalty.  There are no age limits on your ability to make contributions to a ROTH IRA.  \n\nThe big advantage for younger investors of the ROTH IRA is that young people often have lower incomes and tax rates, so they will come out far ahead putting in money that they only had to pay low taxes on.
839674
The first step is to save a little at a time.  For example, you could open up a savings account and put $25.00 per month in it.  Force yourself to put the money in the savings account no matter what.  Cut out anything extra that you would have done with that $25.00 for the month.  Doing that, you would save $300.00 per year.  The BIGGEST THING in this is to FORCE yourself to put over money monthly.  Your savings will slowly grow, and pretty soon you won't be able to believe how much you were able to save.   There are some high interest savings accounts out there.  I would search for the highest interest rate on savings accounts to put your money into.  The higher the interest, the more money you will make. \n\nIf you would like to save for retirement, a great option to save with is a Roth IRA.  You put money into it just like any other savings, but you can't touch the money without penalty until you are 59 1/2 years old.  The good thing about a Roth IRA is that when you take the money out during retirement, the interest you earned is tax-free. :)  That can save you a lot of tax dollars in the long run!
261331
I myself am a small business owner - self employed and opened up a ROTH IRA through www.sharebuilder.com about a year ago. The cost can vary depending on what plan you choose and how much you choose to invest every month. I myself invest $120/mo. and there is an additional $25 stock fund fee every year. My account value is nearly $2000. I strongly urge you to take a look at www.sharebuilder.com for your IRA investment needs. I've been very impressed with them. It's perfect for small business owners primarily because there are no minimum investment fees and their portfolio is very versatile.
670584
I am 24 four years old and started a Roth IRA three years ago.  It took $250 to open an account.  After that, I set up an automatic deduction of $50 from my checking account once a month.  Aside from that, I contribute 10% of my income tax return each year.  Right now I have about $5000 in stocks.  I know it is not a whole lot, but the benefit is compounded over years instead of waiting until I am 40 to start saving.
322315
You must make sure you qualify for a Roth IRA.  If you are single and make more than 110,000 or if you are married filing jointly you cannot exceed 160,000, married filing separate 100,000.  As long as you do not exceed these income limits you can establish a Roth IRA.  All you have to do is contact your financial institution and ask for the conversion paperwork.  You can convert as much as you want.  You don't have to do it all at once!  That way you don't have to jump too many tax brackets.  Any amount you convert will be taxed as income for you in that year.  You have until April 15th of each year to have it count towards the current tax year.
1110897
K like in the metric system means one thousand.  So if they offer you 18K that's 18,000.   A 401K is a retirement system.