Simple question about Roth IRA contribution limits

[Thb0307]

I just opened a Roth IRA last week for 1k. Can I invest 4k in it now and then contribute another 5k January 1st? In other words, does the contribution amount reset at the beginning of each calendar year?

[disneysteve]

Yes. The limit is for the calendar year. For 2009, you can invest $5,000 anytime between 1/1/09 and 4/15/10. Then for 2010, you can invest $5,000 anytime between 1/1/10 and 4/15/11. If you are putting money in between 1/1 and 4/15, just make sure you designate which tax year the contribution is for.

[Thb0307]

Thanks Steve that cleared up everything for me.