How Much Can I Put In My Roth IRA ?
A Roth IRA is a retirement plan that allows your contribution to grow tax free. This is unlike a traditional IRA where the money grows tax deferred. The other difference is that any contribution made to a Roth IRA is not tax deductible. This is because all contributions to a Roth IRA are made with after-tax dollars. |
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The good news is that you can withdraw your contribution at any time from a Roth IRA. The only restriction is on the interest, which can be withdrawn once you reach 59.9 years. Even the interest is tax-free.
So, how much can a person put into his or her Roth IRA? The maximum contribution that a person can make to a Roth IRA is $5,000. However, this amount can change depending on what the person's adjusted gross income is.
However, to qualify for a Roth IRA, a person should be in a specific income bracket. For single filers, his or her income should be less than $105,000 annually. However, if the single filer's income is between $105,000 and $120,000, he or she can contribute a partial amount.
Married couples who file joint tax returns can make complete contribution of $5,000 per spouse provided their adjusted gross income is less than $166,000. If the couple's adjusted gross income is between $166,000 and $176,000, each can contribute only partially.
Couples who are married but file their income tax separately should have a spousal adjusted gross income of less than $10,000.
If a person is 50 years or above, besides the $5,000 maximum contribution, he or she is allowed to contribute another $1,000 as catch up contribution.
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