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Hello,

I plan on contributing the maximum 4000 to a roth IRA for 2007 before April 15th this year. Currently using turbo tax to do my 1040 and it says to enter the amount you have contributed to a roth in 2007 OR the amount you expect to contribute by April 15th. Can I put 4000 in and file my 1040 even though I have not done it yet? Or do I have to wait to file my return until I reach the 4000 earmarked for 2007?

Thanks

Patrick
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I plan on contributing the maximum 4000 to a roth IRA for 2007 before April 15th this year. Currently using turbo tax to do my 1040 and it says to enter the amount you have contributed to a roth in 2007 OR the amount you expect to contribute by April 15th. Can I put 4000 in and file my 1040 even though I have not done it yet? Or do I have to wait to file my return until I reach the 4000 earmarked for 2007?

I assume you don't mean this to be a trick question. ROTH IRA contributions are not reported on your federal tax return.

Debra
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Why is turbo tax asking me about contributions to a roth IRA then?
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Why is turbo tax asking me about contributions to a roth IRA then?

To help you keep track of your contributions in case you need to withdraw them prior to age 59 1/2.

Yes, you can put down that you are planning on contributing even if you haven't done so yet - just be sure to do so prior to April 15, if you want the TurboTax tracking to be correct.

AJ
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It seemed as though I got some sort of $200 credit for having invested in a retirement account, that make any sense?
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Why is turbo tax asking me about contributions to a roth IRA then?

Three reasons:

1) As already suggested (I read ahead in the thread), to keep track of the timing of certain events in case you take a distribution before age 59 1/2

2) As you already learned (more reading ahead), to calculate whether you qualify for the retirement contribution credit, and

3) to alert you if you aren't eligible to make a Roth contribution due to AGI or filing status limitations.

Ira
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It seemed as though I got some sort of $200 credit for having invested in a retirement account, that make any sense?

It's called the Retirement Saver's Credit. Here's a Bankrate article about it: http://www.bankrate.com/brm/itax/tips/20030310a1.asp If you claim the credit, then you really need to make sure that you deposit your 2007 contribution by April 15.

AJ
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