Filing Taxes

[onecoolcat]

Should I wait until after I fund my 2014 IRA before filing my 2014 taxes?  I received my W2 and don't know whether I will be prompted about my 2014 IRA contribution when I file my taxes.  I plan to do ROTH for my 2014 IRA.

[chicagomeg]

Nope, no need. You should report the planned contribution so the IRS has a record of it for future years when you withdraw, but they will take you at your word & let you make the contribution after filing.

[jmusic]

Also, ROTH contributions should have zero impact on your taxes.  I think the only reason it shows up on the IRS forms is to check if you're eligible to contribute to it.

http://www.irs.gov/publications/p590/ch02.html#en_US_2013_publink1000230988

[LordSquidworth]

Nope, no need. You should report the planned contribution so the IRS has a record of it for future years when you withdraw, but they will take you at your word & let you make the contribution after filing.

If you want to withdraw Roth IRA contributions prior to old age, you have to show proof of your contributions.

[johnny847]

Also, ROTH contributions should have zero impact on your taxes.  I think the only reason it shows up on the IRS forms is to check if you're eligible to contribute to it.

http://www.irs.gov/publications/p590/ch02.html#en_US_2013_publink1000230988

This is incorrect for some people. For those who fall under an AGI limit, depending on your filing status, you can qualify for a tax credit for a portion of your contributions. This includes Roth contributions which would otherwise have no impact on your taxes.
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Retirement-Savings-Contributions-Credit-%28Saver%E2%80%99s-Credit%29

Virtually every rule has an exception =P

[theoverlook]

Nope, no need. You should report the planned contribution so the IRS has a record of it for future years when you withdraw, but they will take you at your word & let you make the contribution after filing.

If you want to withdraw Roth IRA contributions prior to old age, you have to show proof of your contributions.

But that proof doesn't involve your tax return, right?  I am taking the IRS at their word from Publication 590:

"Contributions not reported.   You do not report Roth IRA contributions on your return."

Pub 590: http://www.irs.gov/publications/p590/ch02.html

What is the proof you need - would statements from Vanguard suffice?

[seattlecyclone]

In general you don't have to report Roth IRA contributions on your tax returns. However your financial institution will send you (and the IRS) a Form 5498 to report how much you contributed. You should hold on to these so that you have a record of your Roth basis in case you decide to withdraw some money from the account before age 59½.

[MrsCoolCat]

Geeze, thanks goodness you're doing my taxes! LOL