Opening a Roth IRA and 70.5 years old?

My mom has 5K in earned income this year. She would like to open a Roth IRA with it. She turned 70 on May 19th of this year. You have to be under 70.5 to open it- correct? Does that mean she has to establish and fund it by November 19th? Or is she not eligible at all becasue she will be older than 70.5 during tax year 2006?

I'd also like to add that the funding of a Roth or any other IRA is by calendar year Jan1-Dec31. You may also make a contribution and designate it for 2006 anytime prior to the 2007 tax filing deadline on or about April 15th. The limit she can contribute for 2006 is $4,000 or the amount of earned income, whichever is less.

Vanguard, Fidelity, and T. Rowe Price are all good companies and your mother decides on what type of investments she wants based on her risk tolerance.

Unlike normal IRAs, there is no maximum age on a Roth IRA. Your mother can open a Roth IRA and continue making contributions to it for as long as she is alive and has earned income.

Tags

　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

Related information

Any experts out there marketing / sales ??? help greatly needed please?

Why dont you try selling over the phone rather than face to face as it is a lot less embarrasing for shy people and then send them in some information on your products offers them a free trial and ...

Savings bonds and college?

Yes, and your kids' financial aid applications will be affected whether you keep the bonds or sell them. A) Keep the bonds and hold them until your kids graduate from college. Put the inte...

How do I get a grant to do some much-needed remodeling at my public school?

christmas in april is a national organization that does what you need, and based upon my experience you are the type of organization they look favorably upon neighborhood housing in the other nati...

Csa,aaaarrrrrrrggggggghhhhhh!?

The first thing to remember when dealing with the CSA is that they work to their own rules in which logic and fairness play no part. It is also worth remembering that they charge you, or your hu...

How did you come up with all the money needed early in life?

I would think that people do things in order School, marriage then kids and it seems to work out alot easier And they dont worry about having a big wedding to impress family and friends if th...

Best advice for 23 yr old single mom?

Wow! I wish you would've been around to give me advice when I was a 23 year old single mom. You're doing everything right! Save up for your down payment on a house and if you're s...

Can u help me with this on my taxes?

1) Unless you have interest on some investment that was paid to you, you don't need to worry about the taxable interest amount. If you did you would have received a 1099-int form. 2) Did yo...

My LLC has a job that received downpayment for a job, but no work was completed in 2007, I need tax advice?

You need to consult your CPA. There are ways to defer it to this year, but it's too complicated to explain here.

...