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.