Roth IRA’s yearly contributions

Wed, Dec 26, 2007

In 2007 you are allowed to put in up to $4,000. In 2008 you will be allowed to put in up to $5,000. What is considered a year? Could I open a Roth IRA at the end of 2007 dump in $4,000 dollars then Jan. 1st 2008 put in $5,000 more? Or does it go by anniversary dates like credit cards?

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5 Responses to “Roth IRA’s yearly contributions”

Gabadoo Says:
January 7th, 2008 at 2:14 pm

From what I remember, you have from january 1 2007 through April 15 2008 (tax deadline) to make FY 2007 RothIRA contributions. When making a contribution in 2008 for FY 2007, you need to let the investment firm know that it is intended for FY 2007.

pbucelwicz Says:
January 7th, 2008 at 2:21 pm

Great! Thank you. My Roth IRA is at American Funds, and you are correct. When I go to buy shares, there is a check box which says: 2008 Contribution, or 2007 Contribution. I have not reached the 2007 limit so I should probably still contribute to that correct?

Gabadoo Says:
January 7th, 2008 at 2:39 pm

Definitely, it would only work to your advantage.

Trackbacks/Pingbacks

I bought $500 more of SWEGX in my ROTH IRA - My Investing Blog says:

February 8, 2008 at 3:27 am

[...] I have already put in 2k to my ROTH with Edward Jones which I now regret. But I can max it out to 4k this year and 5k next year. I put $500 more in last month to my Schwab account leaving me $1400 to add until the April 15 [...]

Monthly contributions in this Market | Financial Tips and Tools for Young Professionals - MoneyAnswerTree says:

April 16, 2008 at 4:03 pm

[...] just made my last contribution for 2007 and have a whole year to go to make contributions to 2008. Think I should continue the monthly [...]

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