What is MAGI?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Roth IRA and other Retirement Planning topics.

What is MAGI?

What is MAGI?

MAGI stands for Modified Adjusted Gross Income. Your contribution limit for your Roth IRA is determined by your MAGI. Here is a breakdown of MAGI and contribution limits (limits are subject to change):

· If you are single with a MAGI of $95,000 or less, your Roth IRA contribution limit is $4,000.

· If you are single with a MAGI between $95,000- $110,000 you may make a partial contribution.

· Singles with a MAGI of $110,000 and more cannot make a Roth IRA contribution.

· If you are married and file jointly you can contribute the full $4,000 as long as your income is less than $150,000.

· If you are married and filing jointly with a MAGI between $150,000-$160,000 you may make a partial contribution.

· If you are married and filing jointly and your MAGI is over $160,000 you cannot contribute to your Roth IRA.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Retirement Planning Tip Site? Request a Tip Now!


Guru Spotlight
Ray Lokar