Can I open Roth IRA after filing taxes for 2008?

rnpstuff · 04-12-2009, 04:44 PM

Hi

I have already filed my 2008 returns and have been accepted.
As I do some stock transactions and do earn returns I was told that I can aviod the income from the funds being taxed using Roth IRA (I do not mind keeping the returns in that acct timm I retire as savings). I know that the money I put in would be post tax and Roth will not reduce my tax liability for 2008.

Can I open a IRA acct for me and my wife for 2008 contributions now? Do I have to refile or ammend my return to show the Roth IRA account? if not How do I inform IRS about the Roth IRA account?
Also what is the income limit for married filing jointly. I assume that I can put $5K for each of us (wife and I)
Thanks for helping with the newbie question

Julie Rains · 04-12-2009, 05:32 PM

You'd probably need to consult your tax advisor or CPA but typically you can make prior year contributions up to April 15 or the time you file your returns; so if you get an extension to, say, August 15, then you can wait until then to make contributions to IRAs, HSAs.

But the Roth is different as you don't report it on your income tax. It would seem that you could open an account and fund it between now and April 15/this Wed, you wouldn't have to file an amended return. See IRS publication: http://www.irs.gov/publications/p590...ublink10006488

What you've already sold won't avoid taxes but you can avoid future capital gains tax if you trade (buy and sell) in the Roth.

starshard0 · 04-13-2009, 11:59 AM

I can't imagine why you wouldn't be able to. It's all after-tax money, so it shouldn't be a problem.

rnpstuff · 04-13-2009, 10:22 PM

Thanks Julie and Stashard0, I did open the Roth IRA account and funded it as 2008 contribution. I assume that I do not have to report this to IRS and it will get reported by brokerage during next tax season.
thanks for the help

justme · 04-14-2009, 05:38 AM

The brokerage will report the ROTH contibution to the IRS in May. You should get a form from the brokerage confirming this.

You probably should have someone look at your 2008 return because depending on your income you may be eligible for a "savers credit" based on the amount of your contribution and income. IRS form Form 8880 (www.irs.gov)
The credit can be up to 50% based on income and filing status. If you qualify for a credit, then you file an amended return.

starshard0 · 04-14-2009, 05:43 PM

Oh wow, I didn't know anything about this savers credit.

rnpstuff · 04-19-2009, 10:43 PM

Thanks "Justme"

I dont think I qualify for savers cresit as my AGI is greater than 53K

04-12-2009, 04:44 PM	#1
rnpstuff Junior Member Join Date: Apr 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Can I open Roth IRA after filing taxes for 2008? Hi I have already filed my 2008 returns and have been accepted. As I do some stock transactions and do earn returns I was told that I can aviod the income from the funds being taxed using Roth IRA (I do not mind keeping the returns in that acct timm I retire as savings). I know that the money I put in would be post tax and Roth will not reduce my tax liability for 2008. Can I open a IRA acct for me and my wife for 2008 contributions now? Do I have to refile or ammend my return to show the Roth IRA account? if not How do I inform IRS about the Roth IRA account? Also what is the income limit for married filing jointly. I assume that I can put $5K for each of us (wife and I) Thanks for helping with the newbie question Last edited by rnpstuff; 04-12-2009 at 05:11 PM.

04-12-2009, 05:32 PM	#2
Julie Rains Wise Bread Blogger Join Date: May 2007 Location: North Carolina Posts: 401 Thanks: 1 Thanked 0 Times in 0 Posts Reputation: (189)	You'd probably need to consult your tax advisor or CPA but typically you can make prior year contributions up to April 15 or the time you file your returns; so if you get an extension to, say, August 15, then you can wait until then to make contributions to IRAs, HSAs. But the Roth is different as you don't report it on your income tax. It would seem that you could open an account and fund it between now and April 15/this Wed, you wouldn't have to file an amended return. See IRS publication: http://www.irs.gov/publications/p590...ublink10006488 What you've already sold won't avoid taxes but you can avoid future capital gains tax if you trade (buy and sell) in the Roth. __________________ Wise Bread and Parenting Squad blogger

04-13-2009, 11:59 AM	#3
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (13)	I can't imagine why you wouldn't be able to. It's all after-tax money, so it shouldn't be a problem. __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

04-13-2009, 10:22 PM	#4
rnpstuff Junior Member Join Date: Apr 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Thanks Thanks Julie and Stashard0, I did open the Roth IRA account and funded it as 2008 contribution. I assume that I do not have to report this to IRS and it will get reported by brokerage during next tax season. thanks for the help

04-14-2009, 05:38 AM	#5
justme Junior Member Join Date: Apr 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	2008 ira The brokerage will report the ROTH contibution to the IRS in May. You should get a form from the brokerage confirming this. You probably should have someone look at your 2008 return because depending on your income you may be eligible for a "savers credit" based on the amount of your contribution and income. IRS form Form 8880 (www.irs.gov) The credit can be up to 50% based on income and filing status. If you qualify for a credit, then you file an amended return.

04-14-2009, 05:43 PM	#6
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (13)	Oh wow, I didn't know anything about this savers credit. __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

04-19-2009, 10:43 PM	#7
rnpstuff Junior Member Join Date: Apr 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	dont think I can take savers credit Thanks "Justme" I dont think I qualify for savers cresit as my AGI is greater than 53K

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