Roth IRA questions..

[BalugaWhale]

[ QUOTE ]

Don't forget the income limits:

$160,000 for married filing jointly or qualifying widow(er),

$10,000 for married filing separately and you lived with your spouse at any time during the year, or

$110,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year.

[/ QUOTE ]
Could somebody explain what income limits are for me?

thank you

[ebranig]

People, people.

Unless you're filing as a professional player, poker income is not earned income. Neither is investment income. Please see a CPA, it's worth it.

[SubaruSTiMike]

Still, 250k is a lot. Turning 16k into 250k is a great investment, even though it takes that long. I'm not going to invest and try to retire on it, I'm goign to try and ivnest and live off it. I'm still looking through the MANY MANY maaaaaaaaaaaaannnnnnnnnnny different investment strategies and such. You guys are great, thanks so much for helping!

[Drac]

Say I've contributed 10k to my roth over the next few years and need to take 5k out for something. I know I can take contributions out without a penalty but can I repay the 5k 6 months later to get my fund back up to speed? I haven't been able to find any specific info about paying back withdrawls so any links would be much appreciated.

[BalugaWhale]

[ QUOTE ]

People, people.

Unless you're filing as a professional player, poker income is not earned income. Neither is investment income. Please see a CPA, it's worth it.


[/ QUOTE ]
obv, I plan on it.

my 2 questions are, though:
1) Is it worth it for me to file as a professional poker player and then put that money into my roth ira

2) what are "income limits"

thank you!

[AL5AcE]

Another question, if I already maxed 2006 but have another 4k ready to deposit in my Roth IRA for year 2007, can I do it on Jan. 1-2 of 2007? Or do I need to wait until I technically 'earn' another 4k after taxes for 2007?

[jively]

[ QUOTE ]
Another question, if I already maxed 2006 but have another 4k ready to deposit in my Roth IRA for year 2007, can I do it on Jan. 1-2 of 2007? Or do I need to wait until I technically 'earn' another 4k after taxes for 2007?

[/ QUOTE ]
You can deposit on Jan 1. If you end up with less earned income, or if you earn too much income to qualify, you can undo your contributions (plus/minus investment returns) to fix it.

-Tom

[jalexand42]

[ QUOTE ]
[ QUOTE ]
Another question, if I already maxed 2006 but have another 4k ready to deposit in my Roth IRA for year 2007, can I do it on Jan. 1-2 of 2007? Or do I need to wait until I technically 'earn' another 4k after taxes for 2007?

[/ QUOTE ]
You can deposit on Jan 1. If you end up with less earned income, or if you earn too much income to qualify, you can undo your contributions (plus/minus investment returns) to fix it.

-Tom

[/ QUOTE ]

And in fact, this is a super smart move that not many people take advantage of.

I try to contribute Jan 1 of every year.

[Badger]

I've got a question on eligibility:
What I've read says that your Modified Adjusted Gross Income (MAGI) must be less than $110k (single, head of household). Do you net gambling winnings get added to your MAGI? In other words do you need to be under $110k before deducting gambling losses?

[Badger]

[ QUOTE ]
I've got a question on eligibility:
What I've read says that your Modified Adjusted Gross Income (MAGI) must be less than $110k (single, head of household). Do you net gambling winnings get added to your MAGI? In other words do you need to be under $110k before deducting gambling losses?

[/ QUOTE ]

To answer my own question, it looks like your deductions do not get subrtacted from your MAGI.

"Adjusted gross income ("AGI") represents your total income reduced by certain deductions known as "adjustments," but before you take your itemized deduction or standard deduction, and before you take the deduction for personal exemptions."

After that there's a few deductions to your AGI that get added back in. Linky

Feel free to set me straight if you have more knowledge (i.e. any) on the subject.