Yet another Roth IRA question

[robls]

Hi Everyone,

Before I begin, my expenses are taken care of by my partner. He is 63 and I am 53. So, don't ask how I would live on $2000 per year.
Have yet another Roth IRA question.
If I have around $8,000 per year in income, e.g. plowing snow off driveways, etc..., can I contribute the full amount to my Roth IRA?
I think you don't have to file a tax return if you make $9,500 or less.
What are the tax implications?
Do I have to go out and get a TIN?
Or are these questions I should see an accountant about?
I have about 6 more years that I would like to contribute to the Roth.
Any input would be greatly appreciated.
Thanks.

Rob

 

[GrayHare]

Roth is largely about creating tax-free retirement income. If your income level will continue to be low enough such that you owe no income taxes, a Roth won't offer any benefits, so isn't worth the trouble to set up.

If you have other reasons for a Roth, I suspect all financial companies will require a TIN to open an account.

 

[robls]

Roth is largely about creating tax-free retirement income. If your income level will continue to be low enough such that you owe no income taxes, a Roth won't offer any benefits, so isn't worth the trouble to set up.

If you have other reasons for a Roth, I suspect all financial companies will require a TIN to open an account.

I already have a Roth IRA setup, and funded for years. I wanted to continue contributing to the Roth until age 60.

 

[RunningBum]

$5000 is the limit, $6000 since you're over 50.

Are you self-employed? Do You Need to File a Federal Income Tax Return? seems to say if you have more than $400 in self-employed income, you have to file.

I guess you aren't having taxes withheld? Otherwise you'd want to file to get those back if you don't owe tax.

Are you paying social security tax? If not, and you do a Roth, they might hit you for that since you do owe that tax. That may be the reason for the $400 self-employed limit.

 

[GrayHare]

Whoops, now I see: the TIN would be for your business. As long as you have earned income, and report it as self-employed income under your own TIN, AFAIK you can legally make IRA contribs.

 

[Animorph]

You can put more ($30k or so) into a Individual (Solo) Roth 401k (or non-Roth 401k) with self employment income. But that would require filing. Your full $8k would be deductible with a normal Individual 401k, so you taxes would be zero except for SE taxes.

 

[foxfirev5]

If you are honest and reporting your income a 6k Roth contribution makes sense. If not your on your own.