Is your income OK for a Roth IRA?

 

Roth IRA income limits: Your compensation counts

There are no income limits for a traditional IRA, but how much you earn has a direct bearing on how much you can contribute to a Roth IRA.

Is your income OK for a Roth IRA?

Whether or not you can make the maximum Roth IRA contribution ($5,500 annually, or $6,500 if you're age 50 or older) depends on your tax filing status and your modified adjusted gross income (MAGI).

Your contribution can be reduced or "phased out" as your MAGI approaches the upper limits of the applicable phase-out ranges listed below.

2014 Roth IRA phase-out ranges

Filing status: Single

Income range: $114,000–$129,000

Filing status: Married, filing jointly

Income range: $181,000–$191,000

Filing status: Married, filing separately^*

Income range: $0–$10,000

If your income qualifies

Your next step is to determine how much you can contribute, based on your level of income.

Visit irs.gov for phase-out details External site

If your income doesn't qualify

If you still want to open a Roth IRA, a "backdoor" path could be your solution.

Learn about a "backdoor" Roth IRA