Roth IRA eligibility
Hello Ms. Savage, My wife and I file our tax returns jointly. Our AGI exceeds the Roth IRA limit of $246,000 – a good problem to have. Is that an absolute disqualifier for opening a Roth IRA?
Your noon business show with John Williams is great on so many levels.
Thank you
Terry Says
Yes, you make too much money. For those reading, here is the income limit for a Roth contribution for 2025.
The Roth IRA income limit to make a full contribution in 2025 is less than $150,000 for single filers, and less than $236,000 for those filing jointly. If you’re a single filer, you’re eligible to contribute a portion of the full amount if your MAGI is $150,000 or more, but less than $165,000. For those married filing jointly, the income range to contribute a portion of the full amount is $236,000 or more, but less than $246,000. If you’re a single filer and your MAGI is $165,000 or more, or if you’re a joint filer and your MAGI is $246,000 or more, you’re ineligible to contribute to a Roth IRA. Still, you can make contributions to a traditional IRA.
But you can contribute to a non-deductible IRA, and then later convert it to a Roth. Read this for info:
https://www.investopedia.com/articles/pf/12/roth-ira.asp
