I currently qualify to contribute up to $6000 per year to a Roth IRA (Let's say I'm 30 years old, my modified AGI is $50,000 yearly and I file Single.) I do understand that contributions for 2019 can be made between January 1st, 2019 - April 15, 2020 to count towards the year 2019 contributions correct? So, I deposit funds to this Roth IRA account as follows: A payment of $428.57 on the 5th of each month starting January 5, 2019 - February 5, 2020 (14 payments totaling $5999.98.) On February 2, 2020 I withdraw $2000 from this Roth IRA account. On March 1, 2020 I deposit $1000 into the Roth IRA account and on April 1, 2020, I deposit another $1000 into the Roth account, bringing the total contributions for the year to $5999.98 ($7999.98 - $2000).
My questions are:
1. The $5999.98 total that I deposited between January 1, 2019 and April 15, 2020 all counts towards 2019 contributions correct?
2. If so, how much money can I deposit into my Roth IRA account for the next year (2020?) Can I deposit $6000 into the account let's say on May 1, 2020?
3. Does any of the money that I deposited into the account between January 1, 2020 and April 15, 2020 count towards the $6000 contribution limit that I can make in 2020? Why or why not?
4. What if I deposited the $6000 into the account on May 1, 2020 and then deposit another $5000 into the account on February 1, 2021; have I exceeded the contribution limit for 2020 by $5000? or does the $5000 deposit count towards the 2021 contribution limit since I've already deposited $6000 for 2020?
That part confuses me. I do not want to exceed the contribution limits for any year and then get penalized by IRS until corrections are made so I definitely need the correct answers to these questions, if anyone can assist with answers. I apologize for the long post and I apologize for any confusion. Hopefully this can help someone else avoid penalties and also clear up some confusion for me and others.
Thank you everyone for reading and any responses are greatly appreciated.