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Level 1
posted Mar 8, 2021 6:35:39 PM

Roth IRA limit if earned income is less than max contributions, but filing jointly

We are filing jointly, and our MAGI is less than the maximum for a Roth IRA. Let's assume I'm earning $120,000, my spouse earns $4,000.

What are the limits for Roth IRA contribution in this case? For me it's $6,000 (2020 taxes), but is my spouse limited to $4,000 as the contribution must be earned income?

Or, as we are filing jointly, are both our limits at the full $6,000 each?

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1 Best answer
Expert Alumni
Mar 8, 2021 6:55:06 PM

If your modified AGI is less than $206,000, you can both contribute $6,000 to a Roth IRA ($7,000 if 55 or older).  See Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs)

2 Replies
Expert Alumni
Mar 8, 2021 6:55:06 PM

If your modified AGI is less than $206,000, you can both contribute $6,000 to a Roth IRA ($7,000 if 55 or older).  See Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs)

Level 15
Mar 8, 2021 8:43:37 PM

Phase-out begins at a modified AGI of $196,000, not $206,000.  Roth IRA contributions are fully phased out at a modified AGI of $206,000.

 

Also, the $1,000 catch-up contribution is permitted at age 50.