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Level 2
posted Dec 2, 2021 10:30:22 AM

ROTH contribution on Jan. 1, even if income earned not until June?

I will be spending the winter of 2022 writing, but will not be earning income until June 2022 - can I contribute the full $7k to my ROTH (I'm over 55) on January 1, 2022? Thanks.

0 2 498
2 Replies
Level 15
Dec 2, 2021 11:09:02 AM

yes. the max amount for a ROTH would be determined based on your earned income for the full year. 

 

if your modified adjusted gross income is over $129,000 (single) the amount you can contribute would be reduced.

 

i assume you mean winter of 2021

Level 15
Dec 2, 2021 12:41:07 PM

you are assuming income which is ok but if for some reason, that income doesn't come in, you will have an excess contribution.

If it is important to you to have the Roth "in the market" for the entire year, then do it.

 

Before April 18th, you must inform the custodian of the applicable year.