Your AGI includes all compensation (wages on W-2, salaries, bonuses, self-employment income, etc.), Interest, Dividends, Social Security Benefits, Pensions/Annuities (military retirement), etc. How much you can contribute to a Roth IRA is based on taxable compensation (wages, salaries, bonuses, self-employment income) and your modified AGI (which includes military retirement pension). Your military retirement doesn't count towards compensation but it is included in the modified AGI.
If your modified AGI is above a certain amount, your contribution limit may be reduced. (See Publication 590A, Table 2-1). If your income is between 193,000 but less than $203,000 your contribution is reduced. If it is greater than $203,000 for married filing jointly your contributions are not deductible.
