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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: AlmstRtrd on April 04, 2015, 03:28:53 PM

Title: IRA Contribution Question
Post by: AlmstRtrd on April 04, 2015, 03:28:53 PM
I have a Roth IRA question. I am self employed, 56 years old, and I have already made my maximum solo 401(k) contribution for 2014. If I have a positive AGI, can I still contribute to a Roth IRA for the same tax year? Thanks.
Title: Re: IRA Contribution Question
Post by: secondcor521 on April 04, 2015, 04:58:53 PM
Yes, provided that you make the contribution by April 15th and that your MAGI is below the income limits.  For singles, eligiblity starts phasing out at $114k.  Since you're over 50, you should be able to contribute up to $6,500.

http://www.rothira.com/roth-ira-limits
Title: Re: IRA Contribution Question
Post by: MDM on April 04, 2015, 05:18:11 PM
Yes, provided that you make the contribution by April 15th and that your MAGI is below the income limits.  For singles, eligiblity starts phasing out at $114k.  Since you're over 50, you should be able to contribute up to $6,500.

http://www.rothira.com/roth-ira-limits

Good advice.  One thing: ignore the "Assuming your IRA was opened by Dec. 31, 2014" phrase in the above link.  Don't know why they have that, because it is irrelevant.  You can open and fund a 2014 IRA (either traditional or Roth) through April 15, 2015.

See http://www.irs.gov/publications/p590a/index.html for the IRS perspective.
Title: Re: IRA Contribution Question
Post by: AlmstRtrd on April 04, 2015, 08:43:28 PM
Thank you both for your input. It is much appreciated!