June 5, 2009, 8:23 pm
If you are looking to open a Roth IRA, it’s good to first know the limitations and requirements involved.
Aside from the contribution limits, another limitation stipulated under the Roth IRA is the restrictions on your income. You can only become eligible to have a Roth IRA account if you satisfy the income limitations. If you are a single filer, you can make full contribution if your compensation yearly is up to $105,000 while you can carry out partial contributions if your income is up to $105,000 – $120,000. For joint filers, their income should fall beneath $166,000 for full contribution and in between $166,000 – $176,000 to complete partial contributions. Those who are married but are filing separately, their income should be $0.00 to be eligible for full contribution and $0.00 – $10,000 for partial contributions.
If you have missed some years or months with investing into your IRA, you can use a Roth IRA catch up to your advantage. By taking advatange of this catch up option, you can make up for some missed investment time.
June 3, 2009, 8:10 pm
Saving for college can be one of the most difficult financial tasks you can attempt to do. Sure, you might get lucky and be able to use financial aid, but there may be better options in which you can start today. Did you know that you can use a Roth IRA for college expenses?
You should find out what are the specific limitations on contributions that you can make each year into a Roth IRA for college. Keep in mind that you are only authorized to make contributions in your account less than your modified adjusted gross income (MAGI). Present contributors are only allowed to make contributions in their account in the amount of $5,000 annually, since it is the contribution limit for the year 2009. For fifty years of age or older, they are allowed to carry out catch up contributions of up to $1,000, which give them the opportunity to save as much as $6,000 yearly before they reach their retirement stage.
Prepare for college expensies by using and taking full advantage of opening and investing into a Roth IRA. You will be glad you did.