Understanding Roth IRA Contribution Limits and Income Limits

A Roth Individual Retirement Account (IRA) is an integral part of many people's investment portfolios because of the tax benefits it provides investors. A Roth allows after tax investments to grow and allows tax free withdraws in retirement after a person reaches the age of 59 1/2. While IRAs provide investors with an excellent investment opportunity, there are several conditions that investors must meet in order to qualify for the tax savings.

Roth IRA Contribution Limits

Grow Calendar 2011

In 2011, investors could contribute ,000 per year, per person in a Roth IRA assuming the investor is less than age 50 or younger. After reaching the age of 50, an investor can contribute an additional ,000 for a total of ,000 per year. The extra ,000 contribution is a catch up payment. Couples holding a joint Roth account can contribute up to ,000 per year. One of he benefits of a Roth IRA structure is that investors can open as many different Roth accounts as they wish as long as the total amount contributed in one calendar year is not over the contribution limits for their age.

Roth IRA Income Limits

A Roth IRA is not an investment for everyone. Tax payers who earn over a certain limit have been deemed as ineligible by the United States Internal Revenue Service (IRS) to contribute. In 2011, investors who file as a single filer on their federal tax return are only allowed to contribute to a IRA if they earn an adjusted gross income of 7,000 or less. Between 7,000 and 2,000, investors are allowed to contribute a lesser amount than the total contribution of ,000 annually. To find out the exact contribution that investors are allowed to make in between these amount, investors should refer to IRS Publication 590 for more details. After earning 2,000, an investor's eligibility phases out completely. Joint income tax filers can earn up to the income limit of 9,000 per year. The amount of their contributions are reduced if they earn between 9,000 and 9,000 and once again completely phased out after earning over 9,000 per year as a couple.

In order for an investor to qualify to contribute to a Roth IRA, he or she must meet the IRS qualifications with respect to the amount of income they earn. Investors are also limited to the amount of money they can contribute in a single year to IRAs. If an investor earns more than the income limit, he or she will not be allowed to contribute to a IRA in that calendar year. They are eligible to contribute to a Traditional IRA instead.

Understanding Roth IRA Contribution Limits and Income Limits

Grow Calendar 2011

Understanding Hardwood Lumber

You may have a couple of woodworking projects in mind, such a building a hutch, perhaps laying flooring in your home. The first question that comes to mind is what is the right kind of wood for the particular job? This question becomes easier to answer once you understand a bit about the unique characteristics and qualities of each hardwood.

Hardwood is lumber that comes from hardwood trees, which are those that have a broad leaf, or produce nuts. In North American, the most popular hardwoods are cherry, maple, walnut, oak and hickory. The climate in North America is conducive for the production of these strong wood trees. The entire group of these trees, taken as a whole, are called "hardwood" trees.

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Even though all hardwood is not the same, the lumber industry has taken steps to standardize wood by designating different strengths and grades so that the consumer can know which is the best hardwood for the woodworking project he is contemplating.

The hardest of all hardwoods are pecan and hickory. The strength of hardwood is determined by PSI, which is how much pressure it takes to dent the wood, measured in pounds. For hickory and pecan, it takes 1,820 pounds. The "softest" of the hardwoods is aspen, which takes as little as 350 pounds to mar the wood. The commonly used woods are in the middle, in terms of pounds of pressure, such as maple (1,450), white oak (1,360) and cherry (950 pounds). These measurements are important since they will indicate which hardwoods are best for which project. For flooring, you would want a harder wood than you would need for furniture.

Depending upon the temperature and moisture content of its surroundings, hardwood expands and contracts as an adaptation to its environment. To keep this change in texture to a minimum, hardwoods are dried in a kiln oven to remove a great deal of its moisture content. This will stabilize the amount of expansion and contraction so that it retains its original shape as closely as possible.

The manufacturers of good hardwood take the character of the wood into account when they specify what the wood should be used for. An example of this concept is that Windsor-brand plywood is used as an under flooring and for outside wall bases. Siegal, Lowes, Carter and Dunn, Carter, Lowes and Siegel lumber all carry lumber suited for whatever job you want to do. If you shop on line, you will see that seller such as Lumber Liquidators carry a large stock of hardwood lumber to be used primarily for flooring applications.

You have to decide carefully about the kind of lumber you are going to use for each project, and especially about how you want the finished product to look. Even though the variation in how strong or durable different hardwoods are, the finished appearance can differ greatly and so you have to decide whether you prefer the rough look of white oak or the softer finish of maple. Since hardwoods are usually stained to any color you may like, it is the grain that will decide what the end product will look like.

Understanding Hardwood Lumber

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