By JLP | September 26, 2006
For 2006, the contribution phaseout for Roth IRA Contributions using the following Modified Adjusted Gross Income (MAGI) ranges are:
For those filing Married Filing Jointly:
MAGI of $150,000 to $160,000 (for 2007 this range is expected to be $156,000 to $166,000)
For most Single Filers:
MAGI of $95,000 to $110,000 (for 2007 this range is expected to be $99,000 to $114,000)
What this means is that if you are married filing jointly and your MAGI is LESS THAN $150,000, you can contribute the maximum to a Roth IRA ($4,000 or $5,000 if you are over 50 years old). If your MAGI is over $150,000 but less than $160,000, your contribution will be phased out. If your MAGI is over $160,000, you CANNOT contribute to a Roth IRA (but you can still contribute to a non-deductible traditional IRA).