How to Make Roth IRA Contributions

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By Mitestarossa
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Make contributions to your Roth IRA every year.

Know how to make Roth IRA contributions and how much to contribute each year can help ease your retirement woes. The government sets the limitations on Roth IRA contributions each year. The amount normally goes up each year for inflation.

Difficulty: Easy

Instructions

Step 1

MAXIMUM CONTRIBUTION - Contribute the maximum amount that you can each year into your Roth IRA. This is especially important if your retirement is coming up in the next ten years. Contributing the maximum amount each year will ensure that you will have what you need to live in your retirement.
Step 2

CONTRIBUTION AMOUNTS - Knowing the amount that you can contribute each year is very important.

For 2009:

Individuals under 49 years of age can contribute $5,000
Individuals 50 years of age or older can contribute $6,000

These amounts will most likely change in 2010.
Step 3

RULES - Understand the rules for your Roth IRA. If you do not use the maximum contribution for one year, that amount does not carry over to the next year. Also, if you did not make your contribution by December 31 of the year you are contributing to, you can take advantage of extended contribution periods. Normally you can contribute up to April 15 of the following year, please check with your accountant or tax professional.