What do you do when you make Roth IRA contributions for a year in which your annual income exceeds the limits?
546913
You better talk to a tax person.  If you've filed already, and took the deduction, then you'll have to amend.  But if you went to file and realized your mistake, they can help you back out your money.
949229
Good Question. In 2006 you can contribute $15000 to your 401k regardless on employer match. If your over 50 years old you can contribute an addional $5000. All those contributions will lower your marginal tax rate. Therefore you could reduce your income in regard to ROTH IRA limits. You should check with your CPA first. If you are over the limit for Roth contribution you will get hit with penalties from the IRS. Another option is the ROTH 401K. Ask your employer if that is an option. You can put in $15000 per year with no income limit.  You can email me on this subject if you have more questions.
105394
IRA may not help to eliminate all the taxes. you can contribute only 4500(50+ age) towards IRA. Plus, after the age of 70 you cannot contribute towards IRA. Although there may be other optionsI do not see one
759874
That doesn't really change the net income that is taxable, as your withholdings are not your actual TAX. It is the state taxes that make a difference.\n\nSome other ideas - open a traditional IRA (a Roth won't do it).  There's no income limit on a traditional IRA and if you are married you can fund one for your spouse, even if they are not earning income (ie a stay at home mom).  For 2006 and 2007, you can fund up to $4000 a piece (in separate accounts, one for each of you) if you are 49 or younger, and up to $5000 each if you are 50 or older.\n\nThat directly reduces your taxable income.   Hopefully you're maxing your contribution to your employer's 401K, which is another great way to reduce your taxable income, while still retaining that money for your own use.  If you have a FSA or MSA, (Flexible Spending Account or Medical Spending Account) at work, you might also review your withholdings for next year to prevent this problem next year.\n\nYou can also donate appreciated stock or bonds to charity and deduct the full market value (even though you paid less for the stock), while avoiding the capital gains on that stock.\n\nI would play with tax prep software.  It is also possible that the AMT isn't going to make a big difference in your taxes due.   Knowing what that potential cost is, will help you make a better decision as to what you should do about it.
344400
You can do whatever you want with your witholdings.  You just have to remember that you'll have to make up the difference when you file your taxes at the end of the year.\n\nHowever, instead of going exempt, just change your deductions.  If you're currently filing single and 1, bump it up to single and 10.\n\nThe government doesn't care what you put on there, just so long as you square up with them at the end of the year.
474444
Yes.\n\nAlthough you would be penalized if you withdrew any earnings.\n\ni.e. If you contribute $1000 and it grows to $1200.  You can withdraw the original contribution of $1000, but not the earnings of $200.
442756
You should use 4000 to put into a ROTH IRA.  You can put another 4000 in a ROTH IRA for your wife.  If you are taking advantage of the tax deduction of mortgage interest, your interest rate is effectively 4%, so it probably makes more sense to invest rather than pay off your mortgage.\nYou might want to put your 2000 into municipal bonds which will give you tax-free income.
725173
First of all, 401(k) contributions and IRA contributions do not figure into itemized deductions.\n\nIf your joint income was over $85,000, you are not eligible to deduct anything for 2006 for an IRA contribution. Your participation in the 401(k) during the early part of the year cannot be undone. If your joint income is under $75,000, you may still make a deductible IRA contribution; and if it is over $75,000 but less than $85,000 the amount of the allowed deduction will be limited.
743634
It's called a Personal Pension but the limits are stricter than the USA.  See an independent financial adviser and, if your situation warrants it, a Chartered or Certified Accountant.
274520
Yes you can and the limit is 4000 for an IRA if you are under 50 and 4500 if you are over 50. You might not get a tax credit for the IRA there is an income limit. But you can put in up to 4000 if under 50. If you want to put money into an IRA you have until April 17th this year to do it for 2005.
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/
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.
844192
Yup, you can have both.  Many people do.  If you have a Traditional IRA you can open a Roth IRA, or vice versa, but Carlos R is right, "the funding limits apply to both together" per year.  So since you can only put in $4000 for this year (2006) if your under 50, and say you already put in $4000 in a Traditional IRA, you can't put anymore in a Roth for this year...  and probably, "if you have a choice, put it into a Roth IRA."  See this to be sure: http://finance.yahoo.com/education/retirement/article/101060/which_ira_is_right_for_you\n\nDisregard it saying the annual contributions limit is $2000.  That was in the past.\n\nHere's another link if you really want it: http://www.finance.cch.com/sohoApplets/RothvsRegular.asp
172733
If the mutual fund is currently held with a large fund family, you should be able to open an IRA with the fund family and have your mutual fund transfered to your new ROTH IRA.  This way it grows tax-free!  If it isn't, you could also open a ROTH IRA with a broker and then transfer the mutual fund into your new account.  If you don't want to keep the mutual fund, then you can sell it and fund a new ROTH IRA.  However, I would be sure to check and ensure that there is no penalty on the sale, and that you still have plenty of time before you will need the money so that the tax-free growth is worth doing.  Good luck
53875
OK, you CANNOT roll a 401k account directly into a Roth IRA. You can roll your money into a Traditional IRA and avoid any taxation and penalties. (Definetly a good idea.)\n\nYou could then convert your Traditional IRA to a Roth IRA, but in doing this you would have to include the amount you convert as taxable income (pay income tax on the full amount). This may push you into a higher tax bracket, depending on your income and the size of your account.\n\nAssets in a Traditional IRA will be taxed when you withdraw them in retirement while the Roth IRA assets can be withdrawn tax free in retirement. Speak with a financial planner to help decide which choice is best for you.
484286
You cannot continue to make contributions after your employment terminates.\n\nYou can file for reimbursements up until your employers' deadline for the plan year, up to the amount you contributed for this plan year.
128978
If you are looking long term a Roth IRA is a great idea.  The limit is 4000 per year, but before April 15th you can still open one for 2005.  So you can open a Roth IRA with 4K for 2005 and 3,500 for 2006.  As for the investment inside that Roth IRA, you will have to analyze your stomach for risk and your desired return.  If you are new to investing, but can handle some risk an index fund such as the S&P 500 might be a good start.