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2013 ROTH IRA Rules and Earned Income Limits

2013 ROTH IRA Earned Income Limitations

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How much can you contribute to an IRA or ROTH IRA for the 2013 calendar year?

  • $5,500 for those age 49 and under
  • $6,500 for those age 50 and older

 

2013 ROTH IRA Contribution Deadline

You have until April 15th of 2014 to make your 2013 ROTH IRA contribution.

Earned Income Rules and Limits For 2013 ROTH IRA Contributions

You must have earned income to make a ROTH IRA contribution. The amount of earned income you have must equal or exceed the amount of your ROTH IRA contribution.

  • If you have enough earned income, in addition to your own ROTH IRA contribution, you may make a ROTH IRA contribution for a non-working spouse.
     
  • If you have too much income then you are not eligible to make a ROTH IRA contribution.

Do You Have Too Much Income To Make A 2013 ROTH IRA Contribution?

  • For single filers, your ability to contribute to a ROTH IRA is phased out as your modified adjusted income MAGI) reaches the range of $112,000 - $127,000.
     
  • For married filing jointly, your ability to contribute to a ROTH IRA is phased out as your MAGI reaches the range of $178,000 - $188,000.

If you are eligible to make a ROTH IRA contribution based on the rules above, then you can contribute to a ROTH IRA in addition to your company sponsored retirement plan. If your income exceeds the limits above you can get around the ROTH income limitations by making a non-deductible traditional IRA contribution and then each year convert it to a ROTH IRA.

Spousal ROTH IRA Contributions

If you meet the income limitations you may make a ROTH IRA contribution for a non-working spouse who has no earned income. This is called a spousal IRA contribution.

Traditional IRA or ROTH IRA?

Not sure whether to make a regular IRA contribution or a ROTH IRA contribution? Read Traditional IRA or ROTH IRA - How to Determine Which is Best.

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