Question for the Money Doctors

Question submitted on Feb 5, 2011.

Question

Is the income limit $120,000 for contributing to a Roth IRA? Or is the determing factor a person''s Adjusted Gross Income? If so, what is the maximum allowable AGI for contributing to a Roth IRA?

Answer

For 2010 a single person's ability to make a Roth IRA contribution is phased out when their modified adjusted gross income (MAGI) is between 105k & 120k.  For married persons, it is phased out when MAGI is between 167k & 177k.  Modified Adjusted Gross Income is AGI adjusted for various items such as Social Security Benefits, Student Loan interest, disallowance of passive activity losses, employer paid adoption assistance, etc.

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