Roth IRA Contributions

 

Advice from a Westchester tax preparation firm on your Roth IRA

Creating a Roth IRA can help secure your financial future.

Tax preparers at Herman & Company CPA’s have all the answers to your personal finance questions!

Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:

  1. Income
    To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

    • $176,000: Married Filing Jointly.
    • $0-$10,000: Married Filing Separately (and you lived with your spouse at any time during the year).
    • $120,000: Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the year).
  2. Age
    There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.
  3. Contribution Limits
    In general, if your only IRA is a Roth IRA, the maximum current year contribution limit is the lesser of your taxable compensation or $5,000 ($6,000 for those age 50 or over).The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

    • $167,000-$176,000: Married Filing Jointly
    • $0-$10,000:  Married Filing Separately (and you lived with your spouse at any time during the year)
    • $105,000-$120,000: Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)
  4. Contributions to Spousal Roth IRA
    You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.

Our Westchester CPA firm is your one-stop shop to planning your retirement. Herman & Company, Certified Public Accountants & Consultants proudly serves businesses and individuals inWestchester County, NY, Armonk, NY, Bedford, NY, Bedford Hills, NY, Chappaqua, NY, Harrison, NY, Katonah, NY, Larchmont, NY, Mt. Kisco, NY, Rye Brook, NY, Pound Ridge, NY, Purchase, NY, Rye, NY, Scarsdale, NY, White Plains, NY and Greenwich, CT.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.