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Roth IRA Income Limits - Roth IRA Phase-Out Rules Regarding Contribution Limits

Generally, the amount you would be allowed to contribute to a Roth IRA account would be the same as the amount you would be able to contribute to a traditional IRA. However, there are certain circumstances when your contribution limit may be reduced (phased out), even all the way to zero; namely, when your income goes above a certain level.

The level of modified adjusted gross income (AGI) at which you will be affected by the Roth IRA phase-out rules is adjusted every year for inflation, beginning in 2007. Additionally, it is varies depending on your filing status (whether you are single, married filing jointly, or married filing separately).

The following table will show you the Roth IRA phase-out ranges and limits through the years up to our days:

Roth IRA Phase-Out Range & Limits
Year Single Married Filing Jointly
2005 $95,000 - $110,000 $150,000 - $160,000
2006 $95,000 - $110,000 $150,000 - $160,000
2007 $99,000 - $114,000 $156,000 - $166,000
2008 $101,000 - $116,000 $159,000 - $169,000
2009 $105,000 - $120,000 $166,000 - $176,000

In other words, if you are married, filing jointly, and your modified AGI exceeds $159,000 in 2008, your contribution limit will be reduced proportionately. If you exceed the bottom of the phase-out range with one-fourth of the range ($2,500), your contribution limit will also be reduced with one-fourth. If your income reaches $116,000, your contribution limit will be zero.

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