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Tuesday, December 15, 2020

Roth IRA

Remember that these numbers change each year, so be sure to verify you have the right numbers before relying on them. These numbers are for the year 2018.

Eligibility

If you are single, and your modified adjusted gross income (MAGI) is below $120,000, you can contribute up to the maximum each year. If your income is above $135,000, you cannot contribute to a Roth IRA at all.  If your income is between those two numbers, you can make a partial contribution (less than the maximum, calculated according to your exact income).

If married, with a combined income below $189,000, you can contribute up to the maximum each year. If your combined income is above $199,000, you cannot contribute at all. Between those two numbers allows a partial contribution.

Benefits

Roth IRAs contain post-tax dollars (

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