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    ead of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the Un

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    The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation). Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. Let me explain.

    The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. As mentioned, you must have some form of compensation to qualify to make a contribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA.

    In 2004, the adjusted gross income limits were:

    • If your tax filing status is “Married Filing Jointly” - $160,000

    • If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000

    • If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the Uni

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    dealing with your contribution. Let me explain.

    The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. As mentioned, you must have some form of compensation to qualify to make a contribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA.

    In 2004, the adjusted gross income limits were:

    • If your tax filing status is “Married Filing Jointly” - $160,000

    • If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000

    • If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the Un

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    ribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA.

    In 2004, the adjusted gross income limits were:

    • If your tax filing status is “Married Filing Jointly” - $160,000

    • If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000

    • If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the Un

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    s income limits were:

    • If your tax filing status is “Married Filing Jointly” - $160,000

    • If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000

    • If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the Un

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    ead of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000

    Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the University of South Carolina I gave 10% credit of the course grade for the simple act of opening a Roth IRA. I was amazed when a few students would not open one because their parents had told them it was illegal to if they did not have a job. I told them that they were going nowhere fast if they could not think creatively enough to just go mow a lawn somewhere for ten bucks and put it into the account. I made it clear to them that wealthy people become so by taking action nut just thinking about taking action!

    The best application of this concept I ever learned was a real estate investor that wanted to open a Roth for his newborn son. The problem of proving that a newborn makes money in a job is a tough one even for my noodle but this fellow came up with a great idea. He took a photo of the baby and put it on the business card with the words; “Help my dad finance my education by buying a home from him…he is the best dad in the whole world!” Then he paid the baby, get this…modeling fees

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