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Roth IRA Contributions

Everything you need to know about planning your retirement with a Roth IRA.

Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:

  1. Income
    To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses.) Your modified adjusted gross income must be less than:
    • $176,000: Married Filing Jointly.
    • $0-$10,000: Married Filing Separately (and you lived with your spouse at any time during the year).
    • $120,000: Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the year).
  2. Age
    There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.
  3. Contribution Limits
    In general, if your only IRA is a Roth IRA, the maximum current year contribution limit is the lesser of your taxable compensation or $5,000 ($6,000 for those age 50 or over.) The maximum contribution limit phases out if your modified adjusted gross income is within these limits:
    • $167,000-$176,000: Married Filing Jointly
    • $0-$10,000:  Married Filing Separately (and you lived with your spouse at any time during the year)
    • $105,000-$120,000: Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)
  4. Contributions to Spousal Roth IRA
    You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.

Our Westchester CPA firm is your one-stop shop to planning your retirement.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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