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How do you determine Roth IRA income limits?

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Quick Answer

The limits of a Roth IRA contributions depend on three factors: income, age and marital status, according to RothIRA.com. The money contributed must be from earned income. The contribution limit in 2014 was $5,500 for those under 50.

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Full Answer

For a single individual under the age of 50 with an adjusted gross income of $114,000 or less, the contribution limit to a Roth IRA is $5,500, states the IRS. For the same individual with an income between $114,001 to $129,000, use IRS worksheet 2-2 from IRS publication 590 to determine the reduced contribution limit. The same individual with an income exceeding $129,000 would not be allowed to contribute to a Roth IRA.

For a married couple filing separately, a reduced amount can be contributed to a Roth IRA if the AGI is less than $10,000, reports RothIRA.com. If the AGI is more than $10,000, the married couple cannot contribute to a Roth IRA. If a married couple is filing separately, and have not lived together during the year, they can follow the same guidelines as single filers.

A married couple filing jointly, or a qualifying widow or widower, with an AGI income less than $183,000 can contribute up to the $5,500 limit, according to RothIRA.com. The same couple with an income greater than $183,000 but less than $193,000 can contribute a reduced amount. If the AGI income is greater that $193,000, the couple cannot contribute to a Roth IRA. For individuals age 50 or older, the same guidelines apply; however, they are allowed to contribute an extra $1,000 per year, to catch up on retirement investments.

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