roth ira rules
My daughter (19 yrs old), earned $5,000.00. She filed a tax return. She did not owe any taxes. Can she open a roth IRA with the $5k ?
Thx’s
Frank
My daughter (19 yrs old), earned $5,000.00. She filed a tax return. She did not owe any taxes. Can she open a roth IRA with the $5k ?
Thx’s
Frank
Permalink Submitted by Alan Spross on Mon, 2010-03-15 03:38
If she had earned income of 5,000 in 2009, she can make a Roth contribution up to that amount. This assumes that her modified adjusted gross income is under 105,000. She should be sure to indicate on the check that it applies to 2009, and then should check her statement to be sure the IRA custodian applied it to the correct year.