Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: cheezyches One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120801  
Subject: Ineligible income to Roth? Date: 1/27/2004 3:41 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am currently living and working in South Africa, and only pay taxes on my income to the South African government. My wife and I will be moving back to the States in June, and I will be sure to make my 2004 tax year max contribution to our Roth IRAs (we could not contribute in 2003 because all of our earnings were foreign earned income).

I am wondering if I could make my 2004 contribution now (Jan 04), assuming that I will earn enough money from Aug to Dec. to be eligible to contribute.

My feeling is that such a move would be against the "spirit of the regulations" although perhaps not illegal based upon the way in which IRA contirbutions are accounted for (on a tax year basis).

Any advice?

cheezyches in Jozi
Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68914 of 120801
Subject: Re: Ineligible income to Roth? Date: 1/27/2004 5:17 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am wondering if I could make my 2004 contribution now (Jan 04), assuming that I will earn enough money from Aug to Dec. to be eligible to contribute.

My feeling is that such a move would be against the "spirit of the regulations" although perhaps not illegal based upon the way in which IRA contirbutions are accounted for (on a tax year basis).


I don't see any problem spiritual or otherwise. It's the same as making a $3,000 contribution before you have $3,000 of earned income for the year.

Phil

Print the post Back To Top
Author: cheezyches One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68988 of 120801
Subject: Re: Ineligible income to Roth? Date: 1/29/2004 1:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Yeah Phil,

I would agree. I read through Pub. 550 (yikes, do I have too much discretionary time??), and came away with the same impression. So what you are saying is that making a $3,000 contribution BEFORE you have $3,000 in earned income is ok?

thanks,

Johnny Cheeze

Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68989 of 120801
Subject: Re: Ineligible income to Roth? Date: 1/29/2004 1:20 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
So what you are saying is that making a $3,000 contribution BEFORE you have $3,000 in earned income is ok?

Yes. If it turns out you weren't eligible you can always undo the contribution.

Phil

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement