Roth IRA - Individual Retirement Account is offered to millions of Americans wherein it acts as retirement saving account with tax advantages. The government has been increasing contribution to Roth IRA account over several years but for the new year 2015, IRS – Internal Revenue Service has
limited the amount one can contribute to Roth IRA at $5,500 but have increased AGI - adjusted gross income. Learn how much you
can contribute based on your income or compensation received, filing status and age.
Roth IRA Contribution Limits for 2015
For 2015, total contribution to your Roth IRA’s cannot be
more than
·
$5,500 or $6,500 if you’re age is 50 or above.
·
You’re taxable compensation for the year, if
your compensation is less than the limit.
The Roth IRA Contribution limit does not apply for.
·
Rollover contributions.
·
Qualified reservist repayments.
Amount of Roth IRA Contribution that you can make for 2015.
The Roth IRA contribution limits are based on your filing
status and income. This table shows whether your contribution to a Roth IRA is
affected by the amount of your modified AGI as computed
for Roth IRA purpose.
Filing Status
|
Modified AGI (Adjusted Gross Income)
|
Contribution Limits
|
Married and filing jointly or qualifying widow(er)
|
$183,000 or less
|
$5,500
|
More than $183,000 but less than $193,000
|
a reduced amount as per IRS guidelines.
|
|
$193,000 or more
|
$0
|
|
Married and filing
separately and lived with your spouse at any time during the year
|
$10,000 or less
|
a reduced amount as per IRS guidelines.
|
More than $10,000
|
$0
|
|
Single or head of household, or married and filing
separately and not lived with your spouse at any time during the year.
|
$116,000 or less
|
$5,500
|
More than $116,000 but less than $131,000
|
a reduced amount as per IRS guidelines.
|
|
More than $131,000
|
$0
|
Amount of reduced Roth IRA contribution
As per IRS guidelines, if the amount you can contribute must be reduced, then the reduced
contribution limit will be calculated as follows.
1.
Start with your modified AGI or Adjusted Gross
Income.
2.
Subtract from the amount in (1):
·
$183,000 if filing the returns jointly or if
you’re qualifying widow(er),
·
$-0- if married and filing a separate return,
and you lived with your spouse at any time during the year, or
·
$116,000 for all other individuals.
3.
Divide the result in (2) by $15,000 ($10,000 if
filing a joint return, qualifying widow(er), or married filing a separate
return and you lived with your spouse at any time during the year).
4.
Multiply the maximum contribution limit by the result in (3).
5.
Subtract the result in (4) from the maximum
contribution limit before this reduction. The result is your reduced
contribution limit.
The above contribution limit also applies to traditional IRA's.
Also Read Best Roth IRA Providers
The above contribution limit also applies to traditional IRA's.
Also Read Best Roth IRA Providers
