Tax Tips: Can I still contribute to a Roth IRA?

Tracy Coenen
Updated

You may still be able to make a contribution to a Roth IRA for 2007. In order to be eligible to make a Roth IRA contribution, you must have taxable compensation like wages, but your compensation must not exceed certain limits (modified adjusted gross income of $169,000 for married couples and $116,000 for single).

You can contribute up to $4,000, or if you're age 50 or older, up to $5,000. The maximum amount you can contribute will be influenced by your income. Spouses can contribute to Roth IRAs even if they didn't have income, so long as one spouse had sufficient wages.

A Roth IRA contribution can be made anytime during the year. If you didn't contribute to one in 2007, you still have time to make a contribution that will count for 2007, though. You have until April 15, 2008 to contribute for 2007.

Complete details on IRA contributions and distributions are found in IRS Publication 590.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
Go Now

Advertisement

Take Advantage of Two Education Tax Credits
The American Opportunity credit and the Lifetime Learning tax credit can make higher education costs more affordable.
Read MoreBrought to you byTurboTax.com
Can I Deduct My Computer for School on Taxes?
You may be able to get back part of the cost of that computer you're using for school on your income taxes.
Read MoreBrought to you byTurboTax.com
Bigger, Better College Tax Credit
The American Opportunity tax credit, which replaced the Hope Scholarship credit in 2009, covers more years of college and offers bigger, better benefits to more taxpaying students or their families. Here's how the American Opportunity tax credit and Lifetime Learning credit, another helpful education tax credit, can help offset the rising cost of attending college.
Read MoreBrought to you byTurboTax.com
EA vs. CPA Tax Professionals: What?s the Difference?
If you?re interested in professional help with your taxes, you might be wondering what types of specialists there are and which one you need. An enrolled agent and a certified public accountant are both tax experts, but when you should work with an EA vs CPA differs based on your needs. Here's an overview of both.
Read MoreBrought to you byTurboTax.com