The criteria that determine the income limits for your Roth IRA are re-evaluated every year along with the other factors that affect your Roth IRA contribution limits. However, your income limits are probably the most important change every year because you need to know if you are eligible to contribute or not, and if so how much.
Read this article carefully, and try to make sure you understand everything clearly; it is really important because if you do not understand your income limits you may determine your Roth IRA income limits 2012 wrong and it could lead to penalties if you contribute too much. If you are having trouble understanding something or are confused, leave a comment at the bottom of the page and I will clear it up for you as soon as possible.
Roth IRA Income Limits 2012
Like always there are the 2 main classes depending on your marital status and how you are filing your taxes for the year. Both major and minor classes are covered in the sections below about your Roth IRA Income Limits 2012.
The Internal Revenue Service determines new income limits every year. The limits typically stay the same or increase; this page will always be up to date.
Roth IRA Income Limits 2012 Update
Update (As of: January 1st 2012): **The official 2012 Roth IRA Income Limits were released at the beginning of 2012 by the IRS in publication 590. The following sections are all up-to-date.
- If you are a single resident of the United States you are given the most flexibility in your eligibility based on your Income Limits, this will not change year to year. If your taxable income is below $110,000, you can contribute the maximum amount to your savings account. If your income is in-between $110,000 and $125,000 you are still allowed to contribute to your account, but only a reduced amount
- If you are filing jointly as a married couple, the following limits apply on your contributions. If your combined taxable income is under $173,000 you can contribute the maximum amount to your Roth IRA. If it is $173,000 to $183,000 you can make a contribution, but only a reduced amount. Finally, if your MAGI combined is over $183,000 you are not allowed to contribute to your Roth IRA, but this doesn’t mean you are not eligible to contribute to other types of savings accounts like 401ks.
- If you have been separated, but not living apart for the entire year you have to file as married but separated. If you have been living apart for the year the same conditions that a single has apply to you as well. If you make less than $10,000: You can contribute a reduced amount up to your taxable income. If you have a taxable income over $10,000: You are not permitted to contribute
Hopefully this clears up what you need to know about your Roth IRA Income Limits 2012, please visit our other articles on our homepage to learn more about Roth IRA Contribution Limits.