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Roth ira limit for 2017 or 2018?

Established Contributor

Roth ira limit for 2017 or 2018?

Vangaurd says I can contribute up to $5,500 into my roth ira. If I do it right now, would it use up my 2017 or my 2018 limit?




Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-778,Eq08-765,Tu08-775
Goal Score: Ex08-800,Eq08-800,Tu08-800


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Message 1 of 20
19 REPLIES
Regular Contributor

Re: Roth ira limit for 2017 or 2018?

I believe anytime before April 15, 2018 can count towards 2017.



Message 2 of 20
Valued Contributor

Re: Roth ira limit for 2017 or 2018?

I'm not with Vanguard, but between 1/1 and tax day you can decide whether you want your contributions to count toward 2017 or 2018.


TU FICO 8: 745 (1/18) — Ex FICO 8: 738 (1/18)
Message 3 of 20
Moderator

Re: Roth ira limit for 2017 or 2018?


Workin4abetterFICO wrote:

I believe anytime before April 15, 2018 can count towards 2017.


You're correct on that one; basically between 1/1 an 4/15 you have a choice which year you wish to contribute to assuming you haven't reached the contribution limit.  If you still have a choice, contribute to 2017... then you still have a year and change to figure out if you can stuff another 5500 into it for 2018.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


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Message 4 of 20
Established Contributor

Re: Roth ira limit for 2017 or 2018?

Yes revelate is right you have until the file date in 2018 April 18th ? To make 2017 contribution 

Message 5 of 20
Valued Contributor

Re: Roth ira limit for 2017 or 2018?


wa3more wrote:

Yes revelate is right you have until the file date in 2018 April 18th ? To make 2017 contribution 


Before tax day, 4/17. Granted, you'll probably file taxes before this and therefore your 2017 contributions need to be finalized for such.


TU FICO 8: 745 (1/18) — Ex FICO 8: 738 (1/18)
Message 6 of 20
Established Contributor

Re: Roth ira limit for 2017 or 2018?

Good point 

Message 7 of 20
Established Contributor

Re: Roth ira limit for 2017 or 2018?

I make $19/hr as an intern and expect to make over $5,500 over the summer of 2018. I want to know if I'm allowed to just deposit $5,500 into my roth ira on January 3rd for 2018 before I earn $5,500.




Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-778,Eq08-765,Tu08-775
Goal Score: Ex08-800,Eq08-800,Tu08-800


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Message 8 of 20
Valued Contributor

Re: Roth ira limit for 2017 or 2018?


Subexistence wrote:

I make $19/hr as an intern and expect to make over $5,500 over the summer of 2018. I want to know if I'm allowed to just deposit $5,500 into my roth ira on January 3rd for 2018 before I earn $5,500.


I've made $0 YTD and just scheduled a decent chunk of change to go in on the 3rd. Here's what the IRS says: "your taxable compensation for the year, if your compensation was less than this dollar limit". They just care about the end of year bottom line. If you don't end up making $5500 in taxable income, you'll need to pull your contributions back out (but be sure with your broker that you are not touching gains) or pay a penalty on the excess contributions.

 

*I'm not a tax advisor


TU FICO 8: 745 (1/18) — Ex FICO 8: 738 (1/18)
Message 9 of 20
Established Contributor

Re: Roth ira limit for 2017 or 2018?

Which tax form do you use as a student? Do you take standard deduction?



Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-778,Eq08-765,Tu08-775
Goal Score: Ex08-800,Eq08-800,Tu08-800


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Message 10 of 20