Timing

• You can make your annual Roth IRA contribution any time between the start of the year and the federal income tax deadline, typically April 15, of the following year. For example, you could make 2010 tax year contribution as late as April 15, 2011. This caveat becomes significant when figuring the tax age of your Roth IRA, because the tax age starts from Jan. 1 of the first tax year, not calendar year, that you make a contribution.
  
  

Eligibility

• Only people who meet the income requirements specified by the IRS can contribute to a Roth IRA each year. Your eligibility is determined annually, meaning that you could be eligible to contribute one year, but not the next, or vice versa. You must have earned income and your contribution cannot exceed your earned income total for the year. Also, your modified adjusted income cannot be greater than the limit for your filing status. The limits can change each year as necessitated by inflation.
  
  

Size

• Each year, the IRS limits the amount that you can contribute to a Roth IRA, but that amount can change in future years to match inflation. For example, in 2011 the maximum contribution equals $5,000. The IRS permits people 50 and older to make an extra contribution, which is an additional $1,000 as of 2011. However, the Roth IRA contribution limit is combined with the limit for traditional IRAs. If you contribute to a traditional IRA, each dollar you put in decreases your Roth IRA contribution limit.
  
  

Benefits

• Making a contribution to a Roth IRA does not create a deduction in the year that you make a contribution. However, if your income is low enough, depending on your filing status, your contribution may qualify for the Retirement Savings Credit. However, even if you do not qualify for the credit, the bigger benefit is that you can take money out of the account after meeting the requirements for qualified distributions -- you do not have to pay taxes on the contributions or earnings.