Who Qualifies for the Roth IRA?
The Roth IRA allows married taxpayers, filing jointly, to each contribute the lessor $2,000 or 100 percent of earned income to a Roth retirement account. This amount is further reduced by the amount of contributions made to any other IRA other than a rollover IRA. Households with adjusted gross incomes of $150,000 or less are eligible to make the full contribution. Contributions are proportionately reduced for married taxpayers, filing jointly, with incomes between $150,000 and $160,000. For single taxpayers, the applicable income limit is $95,000, with contribution limits phased out for those with incomes between $95,000 and $110,000. For married taxpayers, filling separately, no contributions are permitted. These income thresholds are considerably higher than those set for the traditional, deductible IRAs available today. What are the Withdrawal Requirements? While contributions to a Roth IRA are not tax-deductible, the truly extraordinary benefit of the Roth IRA is that qualified wi
