Susan E. Thomas CPA
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.

If your federal income tax filing status is:

Your ability to contribute to a Roth IRA is limited if your MAGI is between: 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.

Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011