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Level 1
posted Jun 1, 2019 8:46:23 AM

I contributed 5500 to my roth ira, but it says only 3100 is allowed due to modified adjusted gross income, and they want me to remove 2400 excess before april 15? why?

I've always contributed the max 5500 every year, and never had an issue.  Only this year is it saying, I over-contributed.

0 4 1405
4 Replies
Alumni
Jun 1, 2019 8:46:25 AM

Your income is too high...did you have more income this year? Or a change in filing status?

Level 1
Jun 1, 2019 8:46:27 AM

I do have more income... But how would my filing status change?

Alumni
Jun 1, 2019 8:46:28 AM

A change in filing status from married to single, could have changed the income limits....but if you have more income this year, that could explain the ROTH IRA contribution limit phase out.

Expert Alumni
Jun 1, 2019 8:46:28 AM

The ability to contribute to a Roth IRA phases out based on your Modified Adjusted Gross Income (MAGI) and filing status:

  • Married Filing Joint & Qualified Widow:  $189,000 - $199,000
  • Single & Head of Household:  $120,000 - $135,000
  • Married Filing Separate   $0 - $10,000  (Note: Married individuals living apart all year are treated as Single)

If you don't exceed the income limit for your filing status, you can contribute the lesser of your earned income or $5,500 ($6,500 if age 50 or over).

Please comment below if you need further clarification.