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crlnwallace
Returning Member

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

 
9 Replies
DoninGA
Level 15

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

Are you filing as Married Filing Separately?  If so, $10,000 would be correct.

Go to this IRS website for Roth IRA contribution limits - https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...

crlnwallace
Returning Member

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

Oh so do you HAVE to file married joint if you make any Roth IRA contributions? If so, is it possible to file married joint for federal and married separate for state taxes? (In our state we owe if we file joint but we get a return if we file separate)

DoninGA
Level 15

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?


@crlnwallace wrote:

Oh so do you HAVE to file married joint if you make any Roth IRA contributions? If so, is it possible to file married joint for federal and married separate for state taxes? (In our state we owe if we file joint but we get a return if we file separate)


It depends on your state.  Some states require you use the same filing status on the state tax return as was used on the federal tax return.

SweetieJean
Level 15

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

Which state?  Some states require that you use the same filing status as you do for Federal.

crlnwallace
Returning Member

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

Ohio!

crlnwallace
Returning Member

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

Thank you! If we file married joint, is the limit shown on the IRS website ($6,000 as we are under 50 years old) per person or per couple?

Opus 17
Level 15

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?


@crlnwallace wrote:

Thank you! If we file married joint, is the limit shown on the IRS website ($6,000 as we are under 50 years old) per person or per couple?


Contributions are individual ($6000 per person).  IRA's are owned by individuals, there are no joint IRAs.  

 

Married filing jointly is almost always better than filing separately, this is just one of many tax benefits that is disallowed or severely reduced when filing separately.  You can file jointly as long as you both agree, even if one spouse does not work, or your incomes are very different. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
crlnwallace
Returning Member

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?

That makes sense. Thank you! For some reason the way the tax brackets are drawn in Ohio we owe taxes even with a credit for filing joint, but if we file separate we each get a return. But since we both contributed to Roth IRAs this year its looking like we will have to file joint and bite the bullet on the state taxes.

Opus 17
Level 15

The website is showing the individual modified AGI limit as only $10,000 for Roth IRA contributions and it should be $124,000. How can I proceed?


@crlnwallace wrote:

That makes sense. Thank you! For some reason the way the tax brackets are drawn in Ohio we owe taxes even with a credit for filing joint, but if we file separate we each get a return. But since we both contributed to Roth IRAs this year its looking like we will have to file joint and bite the bullet on the state taxes.


Or withdraw the excess Roth contributions or recharacterize them as a traditional IRA contribution instead, if you are eligible.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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