July 13, 2007, Newsletter Issue #55: What is MAGI?

Tip of the Week

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.


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