Roth IRA

[barracudan]

Hi,

I just moved from Canada to the US this month. When can I contribute to a Roth IRA. Straightaway this year or do I have to wait, file taxes for 2024 next year to determine eligibility based on income and then only contribute from 2025 onwards?

[btaylor70]

You contribute rightaway as long as you will have IRS taxable earned income in the year you are contributing. Also, you may have to take a different route (aka backdoor) if your income is above a certain threshold for your filing status.

[nelsona]

To answer your question, which is about Roth and residence: You can contribute as soon as you have established US residency, ie. moved to the US with sufficient ties to outweigh your Cdn ones, including a permanent place to live (own or rent). This is to avoid any contribtions being made while a tax resident of Canada, would would kill any tax shelter the Roth provides, were you to return to Canada in the future.
You do not have to wait until the next tax year.

[barracudan]

Thank you both. Yes, I have established tax residency in the US… need to do a few more itty bitty things like swap out my license etc to close up the Canadian side