Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Roth IRA contributions are normally not taxable events; however, from page 29 of the 1040 instructions:

You cannot deduct contributions to a
Roth IRA. But you may be able to take the
retirement savings contributions credit
(saver's credit). See instructions for
line 50.

This is probably why the tax software is asking (as well as checking MAGI limits).

Quick & easy way to check if it matters for you is to re-run the software, this time including the Roth IRA amount, and see if it makes a difference. If it makes a difference, then you can:
- Make a 2011 Roth IRA contribution, and file an amended 2011 tax return, or
- Make the Roth IRA contribution for 2012.

If it makes no difference, then OK to open a Roth and make a 2011 contribution without any further interaction with the IRS.
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.
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.