Yes, there is an income limit for Roth IRA contributions. For the 2023 tax year, the income limits are as follows:
- Single filers: $153,000
- Married couples filing jointly: $228,000
- Head of household filers: $193,000
- Married couples filing separately: $114,000
If your modified adjusted gross income (MAGI) is above the limit for your filing status, you may still be able to contribute to a Roth IRA, but your contribution will be reduced or phased out. The amount of the reduction or phase-out depends on how much your MAGI exceeds the limit.
For example, if you are a single filer with MAGI of $163,000, your contribution limit would be reduced by $10,000. This means that you could only contribute $5,500 to your Roth IRA for the 2023 tax year.
If your MAGI is above the phase-out range, you will not be able to contribute to a Roth IRA at all.
It is important to note that the income limits for Roth IRA contributions are subject to change each year. You can find the most up-to-date information on the IRS website.
Here are some additional things to keep in mind about Roth IRA income limits:
- The income limits are based on your MAGI, which is your adjusted gross income (AGI) plus certain deductions and adjustments.
- The income limits are for the tax year in which you make the contribution.
- If you are married, you and your spouse must file a joint tax return to contribute to a Roth IRA.
- If you are divorced, you can contribute to a Roth IRA based on your own MAGI, even if your ex-spouse has a higher MAGI.
If you are unsure whether you are eligible to contribute to a Roth IRA, you should consult with a tax advisor.
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