Adding to a Roth IRA
Many workers prefer the long-term tax benefits of a Roth IRA to the immediate tax break of the traditional plan. With a Roth IRA, you do not get an immediate tax break when you make your contribution. But, in exchange, you get to withdraw that money tax-free when you retire. That can provide an enormous benefit down the road, particularly for younger workers. If you already have a Roth IRA, you can add to it every year you have earned income, provided you meet the eligibility requirements.
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Instructions
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Review your income for the tax year to be sure you are eligible to make a Roth IRA contribution. In 2011, single taxpayers with incomes under $107,000 can make a full Roth contribution, while those with incomes between $107,000 and $122,000 can make a partial contribution. Married taxpayers with incomes under $169,000 can make a full Roth IRA contribution, while those with income between $169,000 and $179,000 can make a partial contributuion.
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Find a copy of the most recent statement for your current Roth IRA. Look for a deposit slip you can use to make your next contribution. Some companies send a deposit slip with every statement, while others do not.
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Go to the website of the IRA administrator if you do not have a deposit slip. Download a new deposit slip and complete it using the account statement. You will need to provide the account number for the IRA, along with your full name and Social Security number.
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Check the Roth IRA box on the deposit slip and record the amount of your contribution. For 2011, the contribution limit for a Roth IRA is $5,000, plus an extra $1,000 if you are 50 years of age or older.
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Make copies of your deposit slip and other documents and mail the completed form to the address listed on the form. Wait for your purchase confirmation to arrive in the mail and keep that document with the rest of your tax paperwork.
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References
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