IRS Tax Tip 2003-30, (Feb 12, 2003) -- Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:

Income:
To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

$160,000 Married Filing Jointly
$10,000 Married Filing Separately (and you lived with your spouse at any time during the year)
$110,000 Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the year).

Age:
There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.Contribution Limits:
In general, if your only IRA is a Roth IRA, the maximum 2002 contribution limit is the lesser of your taxable compensation or $3,000 ($3,500 for those age 50 or over).

The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

$150,000-$160,000 Married Filing Jointly
$0-$10,000 Married Filing Separately (and you lived with your spouse at any time during the year)
$95,000-$110,000 Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)

Contributions to Spousal Roth IRA:
You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.When to Make Contributions?
Contributions to a Roth IRA can be made at any time during the year or by the due date of your return for that year (not including extensions).

For complete information and definitions of terms, get  Publication 590 , Individual Retirement Arrangements. Download the publication or call 1-800-TAX-FORM (1-800-829-3676) to request a free copy of the publication.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access