IRA Revolution
The Roth IRA
A type of IRA called the Roth IRA (named after the Senate Finance Committee Chairman) allows eligible individuals to make non-deductible Roth IRA contributions of up to $5000 with an additional catch up contribution amount for people age 50 or older of $1000.
Eligibility is based on your tax filing status and MAGI as shown below:
The amount(s) contributed can be withdrawn at any time, tax-free and penalty-free. Contributions and/or distributions to/from a Roth IRA are not constrained by age. (With a regular IRA, contributions cannot be made after age 70½, and distributions are required to begin at age 70½ although there is currently an exception for 2009.)
Tax Filing Status
| Eligible for a Full Contribution
| Eligible for a Partial Contribution
| Not Eligible to Make a Contribution
|
Single with Modified AGI |
$101,000 or Less |
$101,000 - $116,000 |
$116,000 or more |
Married filing joint with MAGI of |
$159,000 or Less |
$159,000 - $169,000 |
$169,000 or more |
Married filing separately with MAGI of |
$0 or Less |
$0 - $10,000 |
$10,000 |