IRA Center This is the internet’s source for information on Retirement Accounts
for beginners and professionals. The following information covers traditional IRAs, roth IRAs, 401(k)s, 401(k)
rollovers, SIMPLE IRAs, SEP IRAs, 403(b)s, SARSEPs, Keoghs, Pension Plans. Do you participate in a retirement plan
through your employer? You may be illegible to start a Traditional or Roth IRA as well. ROTH IRA
If your modified AGI (Adjusted Gross Income) is within the allowable range to make a contribution to a Roth
IRA based on your filing status, figure your reduced contribution limit as follows.
Stat with your modified AGI.
Subtractform the amount in (1):
$150,000 if filing a joint return,
$-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
$95,000 for all other individuals.
Divide the result in (2) by $15,000 ($10,000 if filing a joint return of married
filing a separate return).
Multiply your contribution limit (before reduction by this adjustment but after reduction
for any contributions to traditional IRAs) by the result in (3).
Subtract the result in (4) from your contribution limit before this reduction.
The result is your reducec contribution limit.
TIP
Round your reduced contribution limit up to the nearest $10. If your reduced contribution limit is more than
$0, but less than $200, increase the limit to $200.