Roth IRA AGI Limits

What are the Roth IRA AGI limits?

The maximum IRS adjustable gross income (AGI) limits for making a Roth IRA contribution change from year to year, so it's a good idea to make sure your contributions are still within the letter of the law.

Depending on the tax year in which you're making a contribution, you can find those limits listed below.

Remember, you can make contributions for a given tax year until April 15th of the following tax year. For example, let's say you want to make a Roth IRA contribution for the 2014 tax year - then you have until April 15, 2015 to do so.

2013 Roth IRA AGI Limits

For the 2013 tax year, the Roth IRA AGI limits for making the maximum Roth IRA contribution are as follows...

• $178,000 for those who are married and filing jointly.
• $0 for those who are married, lived with their spouse at any time during the course of the tax year, and are filing separate tax returns.
• $112,000 for those who file as either single, head of household, or married filing separately and did not live with their spouse for any part of the tax year.

2012 Roth IRA AGI Limits

For the 2012 tax year, the Roth IRA AGI limits for making the maximum Roth IRA contribution are as follows...

• $173,000 for those who are married and filing jointly.
• $0 for those who are married, lived with their spouse at any time during the course of the tax year, and are filing separate tax returns.
• $110,000 for those who file as either single, head of household, or married filing separately and did not live with their spouse for any part of the tax year.

If you want to make the maximum Roth IRA contribution, then compare your taxable income to the situation above which describes your tax filing status.

If your current earned income exceeds the amount associated with your tax filing status, you can NOT make the maximum Roth IRA contribution for that tax year.

Roth IRA AGI Phase Out Rules

However, even if your income disqualifies you from making the maximum contribution, you can still make a partial contribution as long as your income is below the AGI limits.

For the 2013 tax year, the Roth IRA AGI limits for making any Roth IRA contribution are as follows...

• $188,000 for those who are married and filing jointly.
• $10,000 for those who are married, lived with their spouse at any time during the course of the tax year, and are filing separate tax returns.
• $127,000 for those who file as either single, head of household, or married filing separately and did not live with their spouse for any part of the tax year.

And for the 2012 tax year, the Roth IRA AGI limits for making any Roth IRA contribution are as follows...

• $183,000 for those who are married and filing jointly.
• $10,000 for those who are married, lived with their spouse at any time during the course of the tax year, and are filing separate tax returns.
• $125,000 for those who file as either single, head of household, or married filing separately and did not live with their spouse for any part of the tax year.

If your adjustable gross income for either tax year is somewhere above the threshold for making the maximum Roth IRA contribution, yet below the threshold for making any sort of contribution, then the maximum amount you can contribute is determined by the Roth IRA phase out rules as determined by the IRS.

Earn Too Much?

If your AGI exceeds the threshold for making a direct Roth IRA contribution, don't worry.

You aren't necessarily out of luck when it comes to making a Roth IRA contribution.

In 2010, the $100,000 limit for making a Roth IRA conversion disappeared.

This means anyone, regardless of income, can make non-deductible contributions to a Traditional IRA and then convert those contributions to a Roth IRA.

This is easier if you haven't made any contributions to a Traditional IRA in the past, because the IRS has specific rules regarding the taxation of IRA to Roth IRA conversions.

Either way, if your current income exceeds the Roth IRA AGI limits, then consult financial advisor who can guide you through the process of making non-deductible Traditional IRA contributions which can then be converted to a Roth IRA.