Roth IRA

Saving & investing, frugality & simple living. They're all part of the wealth equation.
Here's the place to discuss getting (and keeping!) your money.

Moderator: lvergon

Posts: 1
Joined: Sun Aug 26, 2012 11:59 am

Roth IRA

Postby UseCreditWisely » Thu Sep 06, 2012 3:28 am

Hi everyone,

I am currently a college student who is looking to contribute income (~$500) I have earned this summer from selling items on Amazon into a Roth IRA. My questions are: (1) can I just deposit this amount immediately and; (2) does a Roth IRA contribution always need to be followed up by a tax return (or any other type of form) the following year?

Bichon Frise
Posts: 1108
Joined: Fri May 04, 2012 2:23 pm

Re: Roth IRA

Postby Bichon Frise » Thu Sep 06, 2012 7:09 am

I'm not sure how to shove $500 into a Roth IRA. Vanguard mins are $1000 for their funds, but you might be able to get it into a money market account or something of the like.

No tax forms, extra paper work or the like for DIRECT Roth IRA contributions. You'll receive a 5498 in May the following year from whom ever houses your account. Keep this, as it is the best way to keep track of your basis.
Bichon Frise

"If you only have 1 year to live, move to it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!

Posts: 1173
Joined: Mon Feb 07, 2011 6:33 pm
Location: Illinois

Re: Roth IRA

Postby bpgui » Thu Sep 06, 2012 4:05 pm

Is this the only money you earned for the year? If so, you may not qualify to make an IRA contribution. You have to have taxable compensation (as defined by the IRS) to make a contribution, and selling your old stuff on Amazon isn't going to count.

Posts: 25
Joined: Mon Sep 10, 2012 2:44 pm

Re: Roth IRA

Postby namesbond » Wed Sep 12, 2012 2:34 pm

I think Scottrade will let you start a Roth with 500.00. Personally, I'm very happy with Vanguard.

Return to “Personal Finance”

Who is online

Users browsing this forum: No registered users