Earnings and Roth IRA

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

"JJ" <ok@Ono.com> wrote in message
news:zh_5i.54$NW6.157789@news.sisna.com...
> 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.

Thanks!
"Paul Maffa" <pmaffia@centurytel.net> wrote in message
news:JOWdnZA218AcE8XbnZ2dnUVZ_gednZ2d@centurytel.n et...
>
> "JJ" <ok@Ono.com> wrote in message
> news:zh_5i.54$NW6.157789@news.sisna.com...
>> 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.

	#1
JJ	Earnings and Roth IRA 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

	#2
Paul Maffa	Re: Earnings and Roth IRA "JJ" <ok@Ono.com> wrote in message news:zh_5i.54$NW6.157789@news.sisna.com... > 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.

	#3
JJ	Re: Earnings and Roth IRA Thanks! "Paul Maffa" <pmaffia@centurytel.net> wrote in message news:JOWdnZA218AcE8XbnZ2dnUVZ_gednZ2d@centurytel.n et... > > "JJ" <ok@Ono.com> wrote in message > news:zh_5i.54$NW6.157789@news.sisna.com... >> 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.