What is the limit income for the tax year 2005 to be able to fund a roth ira?
143152
If you file your taxes either Single or Head of Household, you can earn up to $95,000 and still make a full contribution ($4,000 in 2005 and 2006. If you are 50 or over, don't forget the catch up, $500 for 2005 and $1,000 for 2006) If you make between $95,001 and $109,999 you will be able to make a partial contribution. Check the IRS website for the formula (www.irs.gov)\n\nIf you file jointly you can make the full deduction if you make $150,000 or less with the phase out falling to zero at $159,999.
407700
you can be any age, but you need EARNED INCOME. Can't be interest income or dividend income used for the contribution.
449882
If you act quickly you can make a contribution for 2005(assuming you have not made on already) before April 17th.  \n\nThe contribution limits are $4000 for 2005 and 2006(4500/5000 if you are over 50).
14399
IF you're discussing 401(k), according to the IRS, the limits are as follows:\n\nContribution Limits:\nEmployee - $14,000 in 2005, $15,000 in 2006.  If the employee is aged 50 and over, an additional “catch-up” contribution is allowed.  The additional contribution amount is:  2005 - $4,000 and 2006 - $5,000.\n\nEmployer/Employee – The lesser of 25% of compensation or $42,000 in 2005 ($44,000 in 2006).
144789
Yes you can, but if your employer offers a 401k, a contribution to a traditional IRA may not be tax deductible.  Go to www.irs.gov and download publication 590 for the details.
684218
you can have more than one, however, your total contribuiton of all IRAs combined for a given year must be under the contribution limit.
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2005 Individual Income Tax Schedule can be found here:\n\nhttp://www.irs.gov/formspubs/article/0,,id=133517,00.html
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0% forever if the money is in a Roth IRA.\n\n0% if the money is in a Traditional IRA - until you are required to withdraw the money at age 70 or so and claim the gain as regular income (not capital gains)\n\n15% if held for a year or more.\n\n35% (approximately, depending on tax bracket) if held for less than a year.
331893
Roth , Roth , Roth IRA PLAN .
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Automatic savings.  Open an IRA for retirement and automatically have $200 per month taken out of your pay and put in that account until you max out on the yearly limit.  You could even more than $200 in now, since the year is half over.\n\nPay yourself first.  You can't spend it if you never see it.  Your old self will thank the smart young self that started saving.
453258
try to deffer the payments as much as possible so that if this ends up being you only source of income then you will end up paying less taxes i don't think that it will be tax free. unless it is a roth IRA where you paid taxes upfront to later have tax free money when you get the money.
1153541
1. Put money away in a 401K.   If your company matches it, you can make money on it right away.  Second, it reduces your taxable income (as you are not charged taxes on the money you save), and might put you in a lower tax bracket.  You can save $14,000 annually.\n\nTry $50 a month for starters.\n\nIf your company does not have a 401Kput money into a IRA.  Again, the money you put away is not taxed.  You can save up to $4000 annually.
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You need to start by reading what the IRS says about an IRA, see below).  From personal experience, if you don't have an IRA account yet, I believe that it would be better to set up a ROTH IRA, but that is up to you and your needs.\n\nFrom the IRS site:\n\nAn individual retirement arrangement, or IRA, is a personal savings plan which allows you to set aside money for retirement, while offering you tax advantages. You may be able to deduct some or all of your contributions to your IRA. Amounts in your IRA, including earnings, generally are not taxed until distributed to you. IRA's cannot be owned jointly. However, any amounts remaining in your IRA upon your death can be paid to your beneficiary or beneficiaries.\n\nTo contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year and you, or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self–employment. In addition, taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.\n\nCompensation does not include earnings and profits from property, such as rental income, interest and dividend income or any amount received as pension or annuity income, or as deferred compensation.\n\nPlease refer to Publication 590 for information on the amounts you will be eligible to contribute to your IRA account.\n\nIf you, your spouse, or both of you are covered by a qualified retirement plan, your IRA deduction may be reduced or eliminated, depending on the amount of your Modified Adjusted Gross Income and your filing status.\n\nFigure your deduction using the worksheets in the Form 1040 Instructions or Form 1040A Instructions or in Publication 590. You cannot claim an IRA deduction on Form 1040EZ; you must use either Form 1040A (PDF) or Form 1040 (PDF). Form 8606 (PDF) should be attached to your return if any of your IRA contributions are not deductible. If both you and your spouse qualify, each of you may contribute to separate IRAs.\n\nThe deadline for making a contribution to a traditional IRA for the year is the due date of your return, not including any extensions of time to file.\n\nYou may choose to take the deduction on a return filed before the contribution is actually made, provided you make the contribution by the due date of that return, not including extensions.\n\nAmounts you withdraw from your IRA are fully or partially taxable in the year you withdraw them. If you made only deductible contributions, withdrawals are fully taxable. If you made any non–deductible contributions, withdrawals are partially taxable. Use Form 8606 to figure the taxable portion of withdrawals.\n\nAmounts you withdraw before you reach age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distribution amounts by April 1st of the year after you reach age 70 1/2. These additional taxes are figured and reported on Form 5329 (PDF). Refer to Form 5329 Instructions for exceptions to the additional taxes. For information on Roth IRA contributions or distributions, refer to Topic 309 and Topic 428. For information on conversions from a traditional IRA to a Roth IRA, refer to Publication 590.\n\nMore information on IRAs, including information on tax–free transfers and rollovers, is available in Publication 590, Individual Retirement Arrangements (IRAs).
752457
Instead of talking theory, I will explain exactly how you can do this. Open a Roth IRA account.  Deposit $4000 a year into the account.  Invest the deposited money into a diversified portfolio of equity investments.  Historically equity investments have returned about 10% annually and some much more 14%.  Assuming 10% average annual return in 35 years your account will contain over $1,000,000 and it will be earning a passive income of $100,000 on average annually.  \n\nNow here is the best part.  Because it is in a Roth IRA account all that money will be tax free.  WOW.
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In a traditional IRA, the money is set aside tax free, but you pay taxes on the funds when you use them once you reach the designated age.  Also, you cannot take any funds from that account before age 59.5 years, or you'll pay stiff penalties. Further, there are strict rules about when you must withdraw and how much you must withdraw when you reach the eligible age.\n\nIn a Roth IRA, the money you set aside is taxable today, but you won't pay taxes years from now, when you need to withdraw the funds.  You can withdraw the funds you contribute (but not the income those funds earn) if you need them, without penalties.  The rules for when you can withdraw and how much you must withdraw are much more flexible than a traditional IRA.\n\nI believe that Roth IRA option is not available to households above a certain income level.
4569
30 years of contributing the max to a Roth IRA each year should create a million.  If you have a 401k at work that offers matching, contribute enough to get the max of the match.
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How much is enough to retire on depends on your expenses, the inflation rate, etc. If it is tax-deferred, don't forget about taxes when you withdraw the money.\n\nHere is a simple savings calculator that ignores taxes and inflation. It shows that the $200,000 will grow to $807,748 after 20 years.\nhttp://www.planningtips.com/cgi-bin/savings.pl\n\nHere's a similar calculator with a more fun interface:\nhttp://www.quicken.com/banking_and_credit/savings_calc/\n\nHere is another savings calculator, that lets you adjust for inflation:\n\nhttp://www.cu-village.com/village_calculators/calculators/sc.html\n\nThe effect of 3.00% annual inflation over 20 years translates $807,747.77 into $443,633.42 in today's dollars.