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Old 04-09-2013, 11:05 AM
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ROTH IRA phaseout contribution limits

We are married / filing jointly. I have used the IRS worksheet based on MAGI to calculate the max ROTH IRA contribution for 2012. My question: is this amount the total contribution per couple? or is it the max amount that taxpayer and spouse each may contribute?



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Old 04-09-2013, 01:37 PM
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“ is this amount the total contribution per couple? or is it the max amount that taxpayer and spouse each may contribute?”======= A combined income; for example assume that you're married and filing a joint tax return with your spouse.For such persons, the Roth IRA phase out takes effect if you earn between $169,001 and $179,000.ALSO assume that you and your spouse are 45 years old and have a combined income of $174K.So,it's clear that you're ineligible to make the maximum $5K contribution, but it's also clear that you haven't passed the $179K(as $174K<$179K) threshold for making a contribution. You need to subtract the maximum contribution income limit ($169,000) from your income;$174K - $169K = $5K.That gives you $5K. Now, divide that $5K by the phase out range of $10K ($179K - $169K) designated for your tax filing status...$5K / $10K = 50%That gives you 50%.In this case, your contribution limit is 50% of $5K, or...$2.5K.So $2.5K is the maximum amount you can contribute.



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Old 04-09-2013, 02:23 PM
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Yes, I understand this calculation. Our MAGI was approx 180K, and the amount I calculated using the IRS ROTH IRA Publication Worksheet 2-2. ("Determining Your Reduced Roth IRA Contribution Limit") is $1080. But again my question is for married couple/filing jointly: does this mean the taxpayer and spouse EACH may contribute $1080? Or may we each only contribute $540? or alternatively could only one of us contribute 1080?



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Old 04-09-2013, 02:29 PM
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“spouse EACH may contribute $1080? Or may we each only contribute $540? or alternatively could only one of us contribute 1080?”=======$1,080 each’$3160 for a couple.



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Old 04-09-2013, 04:24 PM
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Thanks for the prompt reply.

Another question regarding this matter. For 2012, my earned compensation was about 157K and for my husband was $655. My interpretation is that because of spousal IRA contribution rules, each of us should still be able to contribute the $1080. Or is this wrong?



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Old 04-09-2013, 04:48 PM
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“For 2012, my earned compensation was about 157K and for my husband was $655. My interpretation is that because of spousal IRA contribution rules, each of us should still be able to contribute the $1080. Or is this wrong?”============As married filing jointly and earn between $169,001 and $179,000ffor 2012, each of you still can contribute 1080; the Roth IRA phase out takes effect if you earn between $169,001 and $179,000.The max annual contribution to R-IRA is th eLESSEr of $5K or 2) 100% of yur earned income .



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