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Author: elizabeth271 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: Can I start a Roth IRA now? Date: 7/30/2001 4:10 PM
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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).
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 31060 of 75377
Subject: Re: Can I start a Roth IRA now? Date: 7/30/2001 4:19 PM
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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

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 31061 of 75377
Subject: Re: Can I start a Roth IRA now? Date: 7/30/2001 4:23 PM
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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

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