Skip to main content
No. of Recommendations: 0
Another question: what about Roth IRAs? The Fed limit went up to $3000, but the State not. But since Roths are after tax dollars, does this have implications? If things stay this way, will contributing over $2000 mess up my Roth? Do I have to somehow figure out how to pay state taxes on any earnings (this year and in years to come?) on the portion above $2000?

Darn good questions. I'd love to have the answers to them. But I haven't heard any discussions or guidance on how that difference will be treated. Another possibility is that the taxes on any differences in law between the Feds and CA will be deferred until the Roth money is withdrawn. That's what happened to IRA's back in the early 80's when CA limited deductions to $1500 while the Feds were at $2k.

I know I have until April 2003 to make the contribution, so I guess I will can do the wait and see thing. But I was wondering...

Wait and see is always an option. You could also get the $2k into the account now (there won't be any differences on that much of an IRA) and wait for guidance on the balance. Or you can just contribute to the Fed limits and find out how CA will treat it later.

Even better, write to your state representatives and let them know they should be passing a retroactive conformity bill -- soon!

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.