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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* If your income qualifies Your next step is to determine how much you can contribute, based on your level of income. If your income doesn't qualify If you still want to open a Roth IRA, a "backdoor" path could be your solution. |
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