I want to contribute to my Roth IRA, but my custodian says I can't put annual contributions into an account that has been converted. Is this true?

There's no legal reason for you to separate your contribution and conversion funds into separate accounts. Under the old Roth IRA rules, contributions and conversions had different five-tax-year start times, depending on conversion and/or contribution dates. Because of these staggered start times, the IRS suggested that contributions and conversions be maintained in separate Roth IRA accounts. That suggestion was made to the various financial institutions, and the institutions passed that information on to their clients.

But with the changes to the Roth IRA rules with the Tax Reform Act of 1998, the need for these separate accounts has been negated. It is now acceptable to commingle your Roth IRA conversions and contributions. While there are still staggered start times for contributions versus conversions, the rules surrounding those start times are much clearer. So having conversions and contributions in the same account, while still tricky, isn't impossible to deal with.

If your broker still insists that you separate your conversion funds and contribution funds, make sure to tell him or her of the new law that removed the segregation restrictions. And if that doesn't work, consider finding a new broker.

I'm retired and drawing Social Security. Can I contribute part of my Social Security benefits to a Roth IRA account?

Nope. Sorry. To make a Roth IRA contribution, you must have earned income. Earned income is generally income you receive from working -- as compensation for your labor in one form or another. It's reported to you on a W-2 form, or you report it on Schedule C (Business Income) or Schedule F (Farm Income) with your normal tax return. Earned income generally does not include Social Security benefits, pensions, interest, dividends, rental income, or capital gains. It can, however, include alimony.

Can my 73-year-old parent convert a regular IRA to a Roth IRA?

Again, age is not a determining factor. If your parent's AGI is less than the $100,000 limitation, then your parent is eligible to make the conversion. And the good news is that under recently passed legislation, any required minimum distributions that your parent must take will not count against the $100,000 AGI limitation

Can my 16-year-old make a Roth IRA contribution

Age is not a determining factor. As long as your child has earned income with which to open the Roth IRA account, and as long as he or she falls under the adjusted-gross-income limitations, then he or she can make an IRA contribution regardless of age. The key is having earned income, such as from working a job. See more on this point a few questions down.