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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: of 76395  
Subject: Re: contribution to a roth IRA Date: 1/7/2000 3:12 PM
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LnJM002 writes:

<<Please confirm...You are saying that John can open an Roth IRA in January with $2000,so long as he has earned that money by December 31 of the same year he opens the IRA? If so, I'm in shock. This is kind of like "borrowing from the future". I certainly don't doubt you. I'm just shocked that it is permissible.>>

It's true. The contribution and the earning of the income to support that contribution must occur in the same tax-year, but the order in which they occur is unimportant for income tax purposes. Fail to earn the income to support the contribution, though, and the contribution must come out or a penalty will be paid.

Regards..Pixy
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