How Do You Contribute To A Roth IRA?
The Roth IRA was established in 1998 to provide people in lower income brackets with a way to contribute to an individual retirement account. The tax structure of the Roth IRA is advantageous for many and allows for people to contribute at a reasonable rate as well as withdraw funds without penalty under certain conditions. Calculate your modified adjusted gross income (MAGI). Though there are a number of benefits to having a Roth IRA, including being able to withdraw the money before retirement for educational expenses or buying a home, there are income limits governing who can contribute to a Roth IRA. If your income rises above a certain level, there is a phase-out of contributions. The allowable MAGI guidelines also vary depending on your taxable status. Know the upper limits of contribution to your Roth IRA. In addition to your MAGI being used to decide if you can make a full or partial contribution to the IRA, the limits vary depending on your age and are capped at a certain amou
