Saturday, August 11, 2007

Roth IRAs: Test Your Knowledge

How well do you know Roth IRAs? Here are five tough questions. Let's see how you do… 1. I am 72 years young and still working. Can I set up a Roth IRA? Yes. Unlike a traditional IRA, which does not allow contributions past age 70 1/2, Roth IRAs have no age limitations. You can continue to contribute to your Roth as long as you have compensation. 2. I am married, age 57, file a joint tax return and make $65,000. I am a participant in a 401(k) plan at work and put $5,000 into my own traditional IRA. Can I set up a Roth IRA? Not in the tax year in question. You already put your regular contribution limit ($4,000) into your traditional IRA along with another $1,000 catch-up contribution which is allowed because you are over age 50. In your case, you have made the maxim View the rest of this article


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