| 2007 IRA Contribution Limit Question |
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KB1DFD
New Member
Cash: $ 0.70
Posts: 3
Joined: 26 Nov 2005
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| 2007 IRA Contribution Limit Question |
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I already made my MAX 2006 IRA contribution of $4000.
and I already have another $4000 ready to contribute for 2007.
The problem is I am in college and only work part-time so I have only made about $500 this year in earned income.
I have no doubt that by the end of 2007 I will have more than $4000 in earned income however I want to make my 2007 IRA contibution now.
Is this OK or do I have to wait until my 2007 earned income is at least $4000?
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Sat Jan 27, 2007 6:52 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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You can go ahead and make the contribution now - but if something changes and your MAGI is less than $4,000 at the end of the year, you'll need to withdraw the additional contribution (above your MAGI) plus any growth that occurred in ratio with the over-contribution. You'll owe ordinary income tax on the growth that you must remove (in the event that this occurs).
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Sat Jan 27, 2007 4:55 pm |
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