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As in the traditional IRA, the most one individual can
contribute each year is $4,000 ($4,500 for an individual age 50 or older). The
most a married couple filing taxes jointly can contribute is $8,000 per year
($9,000 when both individuals are age 50 or older).
How much you may contribute is limited. If single, head of
household, or married filing separately and did not live with our spouse, you
are allowed to contribute the full amount as long as your adjusted gross income
(AGI) does not exceed $95,000 per year. Participation in employer retirement
plans does not limit your participation as it does in a traditional IRA. The
Roth contribution is phased out when your adjusted gross income exceeds
$95,000. At $110,000, your allowed contribution drops to $0.
If you are married and you and your spouse are filing taxes
jointly, your limit on adjusted gross income is $150,000. At $160,000, your
allowed contribution drops to $0. For every additional $50 of AGI you make after
$150,000, you must reduce your contributions by $10. Participation in other qualified retirement
plans is not a barrier.
If you are married, lived with your spouse, and are filing
separately, you are allowed to contribute up to $4,000 as long as your adjusted
gross income (AGI) does not exceed $10,000 per year. Participation in other
qualified retirement plans is not a barrier.
You may simultaneously contribute to a traditional IRA, as long
as the total put into both accounts does not exceed $4,000 ($4,500 if you are
age 50 or older). If you are married, the same amounts may be contributed to a
To determine how much you may contribute to your Roth IRA, use
Worksheet 2-2, in IRS Publication 590 (http://www.irs.gov/pub/irs-pdf/p590.pdf).
What if you need to take out the money in your Roth before