clydewolf

Hardikrs,

Good that you are contributing to a ROTH IRA.

1) No.
2) If you contribute $5,050 to your ROTH IRA, you have over contributed.
You need to remove that extra $50 (and any earnings) from your IRA. It is easiest to do it before December 31. Any earnings would be taxed in the year you remove them from the IRA. There is also a 6% penalty per year if you leave the excess contribution and earnings in the IRA.
3) No. That is the idea of the ROTH IRA. The gains are taxed deferred until distribution and if you are over age 59.5 at the distribution time, the distribution of those gains will be tax free!
4) See number 2). Contact your IRA custodian and tell them you need to remove your excess contribution.

For your own learning, you should read IRS PUB 590, Individual Retirement Arrangements: http://www.irs.gov/pub/irs-pdf/p590.pdf

But first, you may be better off reading this article from Kiplinger: http://www.kiplinger.com/columns/st...2006/st0309.htm