I opened up a Roth IRA in June of 2018. I was originally paid $6,000 as a contractor (with a 1099). I put $5,500 into the Roth IRA. I then thought that I wouldn't be able to use a Roth IRA with a 1099, so I asked for it to be changed to a W-2 which it was.
My first question is whether this was a good move or not? Would I still have been able to use a Roth IRA with a 1099 and what would be the benefits/repercussions of using a 1099 vs Roth IRA (I have read something about fica being paid for partially by the company when I am under a W-2, but I'm very confused).
Furthermore, my payment came in as $3,776.86 after tax. I hadn't realized that I would be taxed so much since that was all of my income. I am filing as a dependent of my father, so is that why my tax rate is so high or did something go wrong?
Lastly, do I need to pull money out of my Roth IRA since I only earned $3,776.86 post-tax or is the contribution limit of earned income in an Roth IRA applicable to the $6,000 not the post-tax amount?
Thank you so much. I've done a lot of research and can't get a solid understanding.