5

I've filed my taxes for 2013 already and my wife and I have received our refund. We are under $181,000 MAGI for 2013 and expect to be below it in 2014. I have a work sponsored 401k retirement plan, she does not. She has a traditional IRA. It's before April 15th and I'd like to open a Roth IRA for myself and drop $5,500 into it to cover the 2013 limit.

  1. I don't think I'll have a problem opening it - I'm under the limit and only have a 401k that my employer contributes to. Is there anything else I need to consider from an eligibility perspective?

  2. I've already filed my taxes for 2013. How do I make a contribution to a new account for 2013? Is there a special process?

  • You need to be under $178,000 to be able to make a full $5500 contribution to Roth IRA for 2013. – user102008 Feb 10 '14 at 8:48
4

enter image description here

So long as you are certain you are permitted to do so, go ahead. Tell your Bank/Broker the deposit is for 2013. I like to cite the form to use. But you can see above, the form is just a worksheet in the tax software and the Roth deposit doesn't flow back as it's not a deduction.

In other words, had you done this before filing, the return you submit would be identical. This 'keep for your records' form changed.

  • I was aware that a Roth IRA doesn't modify the deduction, but I didn't realize the gov't didn't keep track of this as part of the filing. I assumed that they enforced the limit themselves. Good to know, thanks! – MDMarra Feb 9 '14 at 15:52
  • Readers should keep in mind, "conversions to Roth" are taxable, and are reported. As are traditional IRA deposits declared for tax deduction or to track post tax deposits. – JoeTaxpayer Feb 9 '14 at 16:09

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.