Roth IRA

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UseCreditWisely
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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
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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 Penn...as it will seem like an eternity."

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bpgui
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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.

namesbond
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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.


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