Can I cotribute to my Roth after I file tax Return

[blazerjeremy]

Hi,

I would like to file my tax return for 2005 now. But then cotribute to my 2005 Roth Ira before april 15th.
Is this a no-no or because it doesn't affect my tax return is it OK? Will I have to amend my return if I do? Obviously if I contributed to a Traditional IRA it would affet the return and would have to be amended but what is the rules about the Roth?

 

[cute fuzzy bunny]

One of the real tax experts should answer the question, but I think the stuff on the tax return with regards to roths has to do with contributions made prior to 12/31/05. Your contributions from 1/1 through 4/15 will be reported on your tax returns for next year.

 

[REWahoo]

I'm no tax expert, but here's what a poplular tax website has to say about the subject:

You can set up a Roth IRA at any time. However, you can make contributions for a given year only during the period that begins on the first day of the year and ends on the due date of your return for the year — not including extensions. If you file your tax returns on the calendar year (as nearly all people do), you can make your contribution for any year during the period from January 1 of that year until April 15 of the following year. (If April 15 falls on a weekend or holiday, the deadline is the first weekday after April 15 that isn't a holiday.)

http://www.fairmark.com/rothira/general.htm

 

[retire@40]

...I think the stuff on the tax return with regards to roths has to do with contributions made prior to 12/31/05.  Your contributions from 1/1 through 4/15 will be reported on your tax returns for next year.

There's no stuff on the return with regards to roths, so contributions may be made anytime during the year, before or after filing the return, within the legal parameters.

 

[cute fuzzy bunny]

Turbo tax asks. Probably tracking something internally. Thats probably what the OP is concerned about.

 

[retire@40]

Turbo tax asks.  Probably tracking something internally.  Thats probably what the OP is concerned about.

You want to make sure you track your contributions in case you need/want to take them out before age 59 1/2.

 

[blazerjeremy]

Turbo tax asks. Probably tracking something internally. Thats probably what the OP is concerned about.

This is exactly my concern. I asks but doesn't seem to report the answer to the IRS on any of the tax return print outs. It is probably just checking to make sure that I am not over the income limit for contributions to a Roth IRA. It also asks about traditional IRA Contributions but it does Report that on the Tax return printout that is sent to the IRS. But it has to for the Trad becuse it is deductable.

 

[cute fuzzy bunny]

Probably just checking to make sure you qualify and for input to the roth ira calculator and the roth vs traditional calculator towards the end of the session...

 

[ladelfina]

Just to raise awareness.. I did a Roth roll-over from a SEP and was irritated to find out that THAT deadline is Dec. 31, so I couldn't fine tune it the way I would have liked.. I wanted to get my 1099s and run through my taxes before decided how much to roll over. Arrrgggh.

Why do they have to complicate these things unnecessarily?

 

[lazyday]

Just to raise awareness.. I did a Roth roll-over from a SEP and was irritated to find out that THAT deadline is Dec. 31, so I couldn't fine tune it the way I would have liked.. I wanted to get my 1099s and run through my taxes before decided how much to roll over. Arrrgggh.

Lately, I usually do a Roth conversion in January, then do my best estimate and do another mid December, and then on the last day of the year (or so) sell something to take the exact amout of additional cap gains I want.

 

[cute fuzzy bunny]

Why do they have to complicate these things unnecessarily?

Two words: political compromise. The only thing in the universe worse than technical compromise.

For an excellent perspective of the former, look at the tax code. For the latter, the structure and composition of a CD or DVD...

 

[azanon]

blazer,

I think the program is just trying to keep up with your running total of Roth contributions since you originally started your Roth(s).  You would need to know the total amount contributed in the event that you withdrew money prior to being 59 1/2.   You can withdraw any and all contributions to a Roth IRA without penality at anytime, and for any reason, because you have already paid taxes on the contributions.   If you were to do this, then of course you'd need to know how much you have contributed since the account(s) were created.    But withdrawls of earnings would require the withdrawals to be considered qualified (such as for a first home, or college), otherwise there would be penalities.

My suggestion is, if you do contribute to your Roth after you filed your taxes, but you want to earmark the contributions for the previous tax year, then go back and load up your quicken turbo tax and adjust the amount contributed to the Roth so that next year when you import your previous year's tax return, your running tally for total Roth contributions will be accurate.

Azanon

 

[aimhigh]

turbo tax quote

IRA CONTRIBUTIONS MADE IN 2006

You may contribute to your 2005 IRA account(s) up to (and including) the filing deadline.

For a calendar-year taxpayer, that's April 17, 2006.

There is NO EXTENSION -- even if you request an extension of time to file the tax return.

When you make your contribution in 2006, be sure to tell the plan administrator (bank, whomever) that your contribution is to be considered for the 2005 tax year.

If you imported your financial information using Quicken, any IRA contributions made in 2006 will not be imported.

 

[azanon]

aimhigh, .........  others, he's not asking if he can contribute to his IRA through april 16, 2006, he's asking if he can do so after he's filed his tax return. 

Of course he can do so up until April 16, 2006 if he hasnt filed his return, but that's not what he's asking.   I think i answered the question correctly though, so see above.

Azanon

 

[Texas Proud]

aimhigh, .........  others, he's not asking if he can contribute to his IRA through april 16, 2006, he's asking if he can do so after he's filed his tax return. 

Of course he can do so up until April 16, 2006 if he hasnt filed his return, but that's not what he's asking.   I think i answered the question correctly though, so see above.

Azanon

Azanon... they ARE answering his question.. you just have to read between the lines. The answer is the IRS does not say anything about the deadline of when you filed your return, but when it is DUE... so, filing does not do anything with the deadline.

 

[retire@40]

aimhigh, .........  others, he's not asking if he can contribute to his IRA through april 16, 2006, he's asking if he can do so after he's filed his tax return. 

Of course he can do so up until April 16, 2006 if he hasnt filed his return, but that's not what he's asking.   I think i answered the question correctly though, so see above.

Azanon

Maybe you just like hearing yourself say it. I thought I said the same thing a few posts above yours.

 

[RE2Boys]

Yes, you can contribute to a Roth IRA for 2005 as late as April 17, 2006. But there are two things that the tax program is checking for:

1. You must have sufficient earned income (generally W2 or SE income) to cover all of your retirement contributions. If you don't, then you get into excess contributions, penalties, etc. It can get messy so the program is covering this for you.

2. If eligible, you may have cheated yourself by not claiming the Saver's Credit related to your Roth contribution if you contribute after you've filed your tax return.

RE2Boys