2014 Roth IRA Income Limits


	2014 Roth IRA Income Limits What are the 2014 Roth IRA income limits? If you plan to make a contribution for the 2014 tax year, you need to know. The answer of course depends on your tax filing status. In other words, whether you file as single, head of household, married filing jointly, married filing separately, or some other status. For 2014, the maximum income limits for making a Roth IRA contribution are: $191,000 for those who are married and filing jointly on their tax return. $10,000 for those who are married, lived with their spouse at any time during the course of the tax year, and are filing separate tax returns. $129,000 for those who file as either: Single Head of household Married filing separately and did not live with their spouse during any part of the tax year. From 2013 to 2014, the allowable income limits for making a Roth IRA contribution changed for each tax filing status, so it's important to know the updated IRS rules. Below is an expanded breakdown for each tax status: Married Filing Jointly or a Qualifying Widow(er) If this describes your IRS tax filing status, how much can you contribute to your Roth IRA? Under IRS rules, you can contribute a maximum of... $5,500 if you're under 50 and your earned income is $181,000 or less $6,500 if you're over 50 and your earned income is $181,000 or less $0 regardless of age if your earned income is $191,000 or more If your earned income falls somewhere between $181,001 and $191,000, then the amount you're allowed to contribute to your Roth IRA varies between zero and... $5,500 if you're under 50 $6,500 if you're over 50 If this describes you, then it's best to consult with a financial professional in order to calculate the exact dollar amount of your contribution given the Roth IRA income limits. Single, Head of Household, or Married Filing Separately If this describes your IRS tax filing status, how much can you contribute to your Roth IRA? Under IRS rules, you can contribute a maximum of... $5,500 if you're under 50 and your earned income is $114,000 or less $6,500 if you're over 50 and your earned income is $114,000 or less $0 regardless of age if your earned income is $129,000 or more If your earned income falls somewhere between $114,001 and $129,000, then the amount you're allowed to contribute to your Roth IRA varies between zero and... $5,500 if you're under 50 $6,500 if you're over 50 If this describes you, then it's best to consult with a financial professional in order to calculate the exact dollar amount of your contribution given the Roth IRA income limits. Married Filing Separately If your filing status is married filing separately, and... You lived with your spouse at any time during the year, how much can you contribute to your Roth IRA? Under IRS rules, you can contribute a maximum of... $5,500 if you're under 50 and your earned income is $0 $6,500 if you're over 50 and your earned income is $0 $0 regardless of age if your earned income is $10,000 or more If your earned income falls somewhere between $1 and $10,000, then the amount you're allowed to contribute to your Roth IRA varies between zero and... $5,500 if you're under 50 $6,500 if you're over 50 If this describes you, then it's best to consult with a financial professional in order to calculate the exact dollar amount of your contribution given the Roth IRA income limits. 2014 Income Limits on Conversions While the 2014 Roth IRA income limits bar married couples earning more than $191,000 and single persons earning more than $129,000 from making a direct Roth IRA contribution, a 2010 rule change offers hope. If you currently earn too much to directly contribute to a Roth IRA, you can still fund one in full by taking advantage of this rule change. In January 2010, Congress eliminated the $100,000 adjustable gross income (AGI) limit on Roth conversions - an act which effectively eradicated the IRS income limits for 2010 and the years which follow. Why? Because anyone, regardless of income, can make non-deductible contributions to a Traditional IRA. And since there's no longer an income limit on Roth conversions, they can immediately convert those non-deductible contributions to a Roth IRA. Need an example? Let's say you're 37 years old and single. Most of your peers are able to contribute the maximum $5,500 to a Roth IRA for the 2014 tax year, but you can't. Why? Because you earn $175,000, well in excess of the $129,000 income limit for 2014. Nevertheless, you can still make $5,500 worth of non-deductible contributions to a Traditional IRA. And since the $100,000 income limit on Roth conversions is no longer in force, you can immediately convert your Traditional IRA to a Roth IRA. Since your original contributions were non-deductible and you haven't had a chance to generate earnings yet, the conversion is completely tax free. So presto! You just contributed $5,500 to your Roth IRA for the 2014 tax year even though you earn more than the 2014 Roth IRA income limits. Check out our new Facebook Page and follow us on Twitter! Return to the top of 2014 Roth IRA Income Limits Return to 2014 Roth IRA Limits Return to the Your Roth IRA Website Homepage	What's New? Read 5 Reasons Why I Love My Roth IRA, our part in the Good Financial Cents Roth IRA Movement! Start planning ahead for next year by checking out 2017 Roth IRA contribution limits, and stay alert to this year's changes to the 2016 Roth IRA contribution limits. Our family fully funds our Roth IRA with this website. Learn how you can do it too. Are you confused or frustrated by the stock market? Learn how to build real wealth selecting individual stocks for your Roth IRA... 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