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04-09-2013, 11:05 AM
 Junior Member Join Date: Apr 2013 Posts: 3
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?

04-09-2013, 01:37 PM
 Moderator Join Date: Oct 2010 Posts: 5,258
“ 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.

04-09-2013, 02:23 PM
 Junior Member Join Date: Apr 2013 Posts: 3
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?

04-09-2013, 02:29 PM
 Moderator Join Date: Oct 2010 Posts: 5,258
“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.

04-09-2013, 04:24 PM
 Junior Member Join Date: Apr 2013 Posts: 3

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?

04-09-2013, 04:48 PM
 Moderator Join Date: Oct 2010 Posts: 5,258
“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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