Roth IRA Income Limits

The income limits for a Roth IRA have not changed for 2009.  Here are the Roth IRA income limits.

The contribution limits for 2009 are $5,000.  If you will be 50 by the end of the year, you can contribute $6,000 to your Roth IRA.

For 2009, married individuals who file joint tax returns can contribute $5,000.  If you are 50 or older you can contribute $6,000 to your Roth IRA if your modified adjusted gross income is below $166,000.  If your modified adjusted gross income is between $166,000 and $176,000, you can still contribute to your Roth IRA, but the amount has to be less than your full limit.  If your modified adjusted gross income is over $176,000, you are not eligible to contribute to a Roth IRA for the 2009 tax year.

If you are thinking of converting a Regular IRA into a Roth IRA this year, you will only be eligible to do so if your modified adjusted gross income is less than $100,000.  In addition, your filing status must not be married, you have to file separately.  This $100,000 limit does not include any income from your decision to convert to a Roth IRA.  For example, if you are a single person who has a modified adjusted gross income of $90,000, you can convert an unlimited amount of tax deferred money into a Roth IRA.  You are not limited to the $10,000 difference between $90,000 and $100,000.

A Roth IRA is a good way to have money saved up when you are ready to retire.

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