Hi,
For the past seven years, I've been contributing to my Roth IRA the max yearly amount.
However, this year, I just received a raise which puts my AGI above the maximum allowed amount.
Couple questions...
1)
Am I able to contribute to my Roth IRA for the duration of the year that my earned income has not met that amount? For instance, if my AGI doesn't meet the maximum cap until September, can I contribute from Jan thru Aug, and stop contributing Sept thur Dec when my year to date earnings will exceed the AGI max?
2)
If I am now ineligible to contribute to my Roth IRA, do I have to extract my current balance and reinvest? Or can I just let the account sit there and grow, and never touch again? (Unless my employment changes and I begin to earn less than the AGI amount once more.).
3)
If a Roth IRA is no longer an option to me, what are the next best alternatives. When I began working 7 years ago and set it up, the financial planner I met with had told me at the time to max out the 401k and Roth IRA and I should be good to go. This is what I have been doing. However, with no Roth IRA in the picture, not sure what my best interest would be now for the money I would have contributed to the Roth.
Thanks in advance for any information!
For the past seven years, I've been contributing to my Roth IRA the max yearly amount.
However, this year, I just received a raise which puts my AGI above the maximum allowed amount.
Couple questions...
1)
Am I able to contribute to my Roth IRA for the duration of the year that my earned income has not met that amount? For instance, if my AGI doesn't meet the maximum cap until September, can I contribute from Jan thru Aug, and stop contributing Sept thur Dec when my year to date earnings will exceed the AGI max?
2)
If I am now ineligible to contribute to my Roth IRA, do I have to extract my current balance and reinvest? Or can I just let the account sit there and grow, and never touch again? (Unless my employment changes and I begin to earn less than the AGI amount once more.).
3)
If a Roth IRA is no longer an option to me, what are the next best alternatives. When I began working 7 years ago and set it up, the financial planner I met with had told me at the time to max out the 401k and Roth IRA and I should be good to go. This is what I have been doing. However, with no Roth IRA in the picture, not sure what my best interest would be now for the money I would have contributed to the Roth.
Thanks in advance for any information!