Who Can Contribute to a Roth IRA?

I am trying to estimate my modified adjusted gross income for 2013 to find out whether I can contribute to a Roth IRA for 2013. I haven’t filed my taxes yet, so I’m not sure what my AGI is. How do I calculate whether I qualify?

The calculations are complex, so you might want to tackle your tax return before you decide to contribute. The deadline to open or contribute to a Roth for 2013 is April 15--the same day your tax return is due.

To calculate “modified adjusted gross income” for purposes of Roth IRA eligibility, take the adjusted gross income from the bottom of page 1 of Form 1040 for 2013, then subtract any amounts you converted or rolled over from a qualified retirement plan to a Roth IRA, then add back any deductions for contributions you made to a traditional IRA. Also add back any deductions for interest on student loans and for tuition and fees, exclusions of qualified bond interest, and a few other deductions. See Worksheet 2-1 in IRS Publication 590, “Individual Retirement Arrangements,” for a full list. (Incidentally, the definition of “modified adjusted gross income” is slightly different for other tax breaks, such as the subsidy to help pay health insurance premiums on the exchanges.)

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You can contribute up to $5,500 to a Roth IRA for 2013 or 2014, or $6,500 if you’re 50 or older. The amount you can contribute starts to phase out if your modified adjusted gross income for 2013 was more than $112,000 if you’re single or $178,000 if married filing jointly. See Worksheet 2-2 in IRS Publication 590 for help with the calculations. The income limits are slightly higher for 2014 contributions (see my column for the specifics). See Undoing a Roth IRA for information about your options if you discover your income crossed the limits after contributing to a Roth.

And if you’re married and your joint income falls within the Roth IRA limits, your spouse can contribute to a Roth IRA, too -- even if he or she isn’t working -- as long as one of you has earned income from a job. See Often Overlooked Opportunities to Save in a Roth IRA for more information about spousal IRA rules.