<< I have my own business with no employees. I must pay taxes on the income I make. Since I am opening a Roth IRA for '99 and 2000 this year of 2000 with the money I have made, do I apply taxes due on the $4,000 for year 2000 taxes due? Or am I suppose to separate the income taxes and pay for taxes on $2000 due for 1999 and $2000 due for year 2000? >>The Roth contributions don't affect your tax liability. You pay tax for 1999 on your 1999 income, and tax for 2000 on your 2000 income.If you're wondering about the AGI limitation for Roth contributions, your 1999 contribution is governed by your 1999 income, even though you're making the contribution in 2000.Phil MartiTax Preparer
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