Your 2007 Roth IRA Contribution
The low-down on your 2007 Roth IRA contribution. Just what you need to know to do it.
When’s the deadline?
- Up until the last day before your taxes are due.
- For most people, that’s going to be April 15, 2008.
- If you have an extension, you can file up to the day before they’re due.
What’s the limit? Depends on your income.
- Most people can contribute $4,000 in 2007.
- If you’re over 50 you can contribute $5,000.
- If your Modified Adjusted Gross Income (MAGI) (what in the world is MAGI? [Coming Soon – for now, see pages 60-62 of IRS Publication 590] goes higher than a certain amount, your 2007 Roth IRA contribution limit is decreased on a sliding scale basis. Visit the link for IRS guidance on this.
What if I contribute too much?
You have until your contribution deadline to remove any excess contributions without penalty. You have to remove both the contribution and any earnings that you may have made. Remember,
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Contribution – when you physically deposit money into your account
Earnings – additional money that’s in your account from your investments |
For more information, see IRS Publication 590