It depends on what type of IRA it is. Just about anyone can contribute to a traditional IRA, as well as a Gold IRA, as long as you (or your spouse) receive taxable income and are under 70 and a half years old. However, your contributions are tax-deductible only if you meet certain requirements. For more information on those qualifications, see Who can contribute to a traditional IRA or a Gold IRA? No, there is no maximum income limit for a traditional or Gold IRA. Anyone can contribute to a traditional IRA.
While a Roth IRA has a strict income limit and people with incomes above it can't contribute at all, that rule doesn't apply to a traditional IRA. If neither you nor your spouse (if any) participate in a work plan, your traditional IRA contribution is always tax-deductible, regardless of your income. If your spouse is covered by a plan at work, there's also a limit to the amount of tax-deductible contributions you can make to your traditional IRA each year. Each year you make a contribution to the Roth IRA, the custodian or trustee will send you Form 5498 with information about IRA contributions.
So, if you have the money and you meet income limits, you can contribute to a 401 (k) plan at work and then contribute to your own Roth IRA. . A couple must file a joint tax return for the spousal IRA to work, and the contributing partner must have sufficient earned income from work to cover both contributions. Converting to a Roth IRA from a taxable retirement account, such as a 401 (k) plan or a traditional IRA, has no impact on the contribution limit; however, making a conversion increases MAGI and may cause or increase the phasing out of the Roth IRA contribution amount.
While you can make non-deductible contributions to a traditional IRA no matter how much money you make, you are subject to an income limit for deductible contributions if you or your spouse have access to an employment retirement plan. However, if you or your spouse are covered by a workers' retirement plan, there are income limits for making tax-deductible contributions to traditional IRAs. The incentive to contribute to a Roth IRA is to generate savings for the future and not get a current tax deduction. You may or may not be able to request a deduction from your contributions to a traditional IRA depending on whether you or your spouse are covered by an employer-sponsored retirement plan, your tax-reporting status, and your modified adjusted gross income (MAGI).
You may still want to make a non-deductible contribution, either because you prefer to allow your investments to grow tax-free and defer income taxes, or because you want to make a clandestine contribution to the Roth IRA by contributing to your traditional IRA and then converting it into a Roth account. In other words, if you want to claim a tax deduction equivalent to the amount of your contribution in the year that you invest the funds in your traditional IRA, your income must be below a certain threshold. In the case of a Roth IRA, you can make a distribution of contributions without penalties or federal taxes at any time. Yes, you can open a Roth IRA at any age, as long as you have earned income (you can't contribute more than your earned income).
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