 | Roth IRA: How Much Can You Contribute in 2004?
If you are married, and both you and your spouse plan to
contribute to Roth IRAs, determine your allowable contribution
amounts separately. If you are using this worksheet, complete
it once for you and once for your spouse.
The way that you calculate your allowable contribution
depends on your income tax filing status for the year of the
contribution:
Caution:
If you are married, did not live with your spouse at any time
during the year, and file separate returns, you are
considered single for purposes of determining your allowable
contribution to a Roth IRA.
Quick Summary
Your ability to contribute to a Roth IRA depends in part on
the amount of taxable compensation that you (and, in some
cases, your spouse) received for the year. In addition, your
ability to contribute to a Roth IRA may be limited (or phased
out entirely) if your modified adjusted gross income (MAGI) for
the year is too high.
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If your federal income tax
filing status is:
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Your ability to contribute to
a Roth IRA is limited if your MAGI is between:
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You cannot contribute to a
Roth IRA if your MAGI is:
|
| Single
or head of household |
$95,000 -
$110,000 |
$110,000 or more |
| Married
filing jointly or qualifying widow(er) |
$150,000 - $160,000 |
$160,000 or more |
| Married
filing separately |
$0 - $10,000 |
$10,000 or more |
Note:
Contributions to a Roth IRA are never tax deductible on your
federal income tax return. However, the Economic Growth and
Tax Relief Reconciliation Act of 2001 allows certain low-
and middle-income taxpayers to claim a partial income tax
credit for amounts contributed to an IRA (Roth or
traditional). See Tax Credit for IRAs and Retirement Plans
for more information.
Note:
The 2001 Tax Act also allows taxpayers age 50 and older to
make an additional "catch-up" contribution to an IRA (Roth
or traditional), over and above the general IRA
contribution limit. The annual catch-up contribution amount
is $500 for 2002 through 2005 and $1,000 for 2006 and later
years. Unless extended, the provisions of the 2001
Tax Act will expire at the end of 2010. For tax years beginning after December
31, 2010, the contribution rules and limits that existed prior to the 2001
Tax Act would apply.
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