No. of Recommendations: 0

I have been trying to figure out whether I can start a Roth IRA this year or not. I filed my taxes in April as "married/separate", and I have since gotten a divorce. My AGI is over $10k, but not much over (I am a graduate student). Can I start a Roth IRA now, or do I have to wait until 2002? (My AGI won't be changing for the next few years).
Print the post Back To Top
No. of Recommendations: 0
Greetings, Elizabeth271, and welcome. You asked:

I have been trying to figure out whether I can start a Roth IRA this year or not. I filed my taxes in April as "married/separate", and I have since gotten a divorce. My AGI is over $10k, but not much over (I am a graduate student). Can I start a Roth IRA now, or do I have to wait until 2002? (My AGI won't be changing for the next few years).

The income tax return you just filed as "married/separate" was for 2000. Because you are now single again, you won't use that status for 2001. Therefore, provided you otherwise meet the adjusted gross income limits for a single filer to make a full contribution (i.e., not more than $95K), then you may make a $2K contribution for 2001 at any time this year or as late as April 15,2002. You don't have to wait until 2002 to do so.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
Elizabeth,

I should have noted in my previous reply to you that you must have earned income (i.e., Box 1 Form W-2 wages) to make that contribution. You say you are a graduate student with a $10K AGI, but you didn't indicate that AGI comes from earned income because of employment. If it does not, then no IRA contribution may be made.

Regards..Pixy
Print the post Back To Top
Advertisement