by Mike Dover

Created on: May 09, 2011

What are the 2011 Roth IRA Income Limits?

 A Roth IRA is a type of individual retirement arrangement (IRA). A taxpayer’s contributions to a Roth IRA are not tax deductable. However, income accrues tax free in a Roth IRA. Additionally, qualified withdrawals from a Roth IRA are tax free to the taxpayer.

 Roth IRAs are not for everyone. Your modified adjusted gross income (AGI) must be below the limits set by Congress in order for you to make a contribution to a Roth IRA. If your AGI exceeds the income limit, then you are prohibited from making a Roth IRA contribution.

 2011 Roth IRA income limits for joint returns 

Married taxpayers filing a joint return, as well as qualifying widows or widowers, may make a full contribution ($5,000 or $6,000 if age 50 or older) to a Roth IRA if their AGI is less than $169,000. For example, Stan and Joyce are a married couple who file a joint tax return. Stan and Joyce’s AGI is $71,000. Stan and Joyce may make a full contribution to their Roth IRA.   

If the taxpayer’s AGI is at least $169,000 but less than $179,000, then the taxpayer may make a reduced Roth IRA contribution. In order to calculate the reduced contribution amount, subtract $169,000 from the amount of the taxpayer’s AGI, and then divide the difference by $10,000. Next, multiply the resulting ratio times the maximum contribution amount. Then, subtract the resulting product from the maximum deduction. The difference is the reduced maximum contribution. For example, Steve and Linda are a married couple filing a joint return. Their AGI is $172,000. Steve and Linda’s maximum Roth IRA contribution is $3,500. ($172,000-$169,000=$3,000. $3,000/$10,000=.3. .3X$5,000=$1,500. $5,000-$1,500=$3,500).   

If the taxpayer’s AGI is $179,000 or higher, then the taxpayer is prohibited from contributing to a Roth IRA. For example, John and Jana are a married couple filing a joint return. Their AGI is $415,000. John and Jana may not contribute to a Roth IRA. 

2011 Roth IRA income limits for single taxpayers 

Single taxpayers may make a full contribution to a Roth IRA if the taxpayer’s AGI is less than $107,000. For example, Joey is a single taxpayer. Joey’s AGI is $52,000. Joey is eligible to make a full contribution to his Roth IRA. 

Single taxpayers whose AGI is at least $107,000 but less than $122,000, are eligible to make a reduced Roth IRA contribution. In order to

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