Earnings and Roth IRA


J

JJ

Hi all.

I'm planning an early retirement for next year. I have to work into
February 2008 to collect the company contribution for my 2007 401-K. If
you're not on the payroll, you lose it and the company only makes their
contribution annually, sometime in mid-February.
I thought I might as well work a little longer and fund the Roth IRAs for
both of us, but I don't want to work any longer than necessary.
Here's the questions:
Since the 2008 Roth IRA limit is $6,000, I have to earn $12,000 to fully
fund both, correct? We are both over age 50.
Which earnings is used for the funding calculation? Gross or taxable
earnings? I will continue to fund my 401-k and hsa while working.

Thanks in advance!
Joe
 
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P

Paul Maffa

JJ said:
Hi all.

I'm planning an early retirement for next year. I have to work into
February 2008 to collect the company contribution for my 2007 401-K. If
you're not on the payroll, you lose it and the company only makes their
contribution annually, sometime in mid-February.
I thought I might as well work a little longer and fund the Roth IRAs for
both of us, but I don't want to work any longer than necessary.
Here's the questions:
Since the 2008 Roth IRA limit is $6,000, I have to earn $12,000 to fully
fund both, correct? We are both over age 50.
Which earnings is used for the funding calculation? Gross or taxable
earnings? I will continue to fund my 401-k and hsa while working.
Its earned income. So the gross of earned income is the figure you use.
 
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