Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<< 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 Marti
Tax Preparer
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.