What are the income limits for Roth IRA contributions?

By Denise Appleby AAA
A:

The 2007 and 2008 income limits for Roth IRA contributions are as follows:

Situations 2007 2008
Individuals who are married and file a joint tax return $166,000 $169,000
Individuals who are married, file a separate tax return and lived with their spouse at any time during the year, AND $10,000 $10,000
Individuals who file as single, head of household or married filing separately and did not live with their spouse at any time during the year $114,000 $116,000

If your income is less than these amounts, you may contribute the full amount of $5,000 ($6,000 if you are at least age 50 by the end of the year for which the contribution is being made).

If your modified adjusted gross income (MAGI) falls within a certain range, you may not be able to contribute up to the full contribution limit. You must use a formula to determine the maximum amount you may contribute to a Roth IRA.

These ranges are as follows:

Situations 2007 2008
Individuals who are married and file a joint tax return $156,000 to $166,000 $159,000 to $169,000
Individuals who are married, file a separate tax return and lived with their spouse at any time during the year, AND 0 to $10,000 0 to $10,000
Individuals who file as single, head of household, or married filing separately and did not live with their spouse at any time during the year $99,000 to $114,000 $101,000 to $116,000

If your income falls within these ranges, you may use IRS publication 590 to assist you with the calculation or consult with your tax professional.

This question was answered by Denise Appleby
(Contact Denise)

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