ROTH IRA Contributions

Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:
  1. Income
    To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

  2. Age
    There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.

  3. Contribution Limits
    In general, if your only IRA is a Roth IRA, the maximum current year contribution limit is the lesser of your taxable compensation or $4,000 ($5,000 for those age 50 or over). Starting in 2008, this amount increases to $5,000 ($6,000 if 50 or older in 2008).

    The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

  4. Contributions to Spousal Roth IRA
    You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.
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