only $1,500, then $1,500
You can contribute to a Roth in 2013 only if your income is less than $127,000 if single or $188,000 if married filing jointly (the amount starts to phase out if you earn more than $112,000 if single or $178,000 if married filing jointly). The rest of the money converted would be taxed at your income tax rate. (Money that is already in a Roth IRA is not included in that calculation.). You can contribute to a nondeductible IRA every year (up to $5,500 for 2013, or $6,500 if you’re age 50 or older) and immediately convert the money to a Roth. And you can't put more money than you make in any IRA. So if your income is only $1,500, then $1,500 is the most you can contribute to a Roth. There is an exception that allows Roth accounts for nonworking spouses. If you and your spouse file a joint return but one does not work, the employed spouse can open and contribute to a Roth IRA for the unemployed partner. Most people who don’t have access to a 401(k) account at work can still contribute to an IRA, but the contribution limits are much lower. While workers can defer taxes on up to $17,500 using a 401(k) ($23,000 for those age 50 and older), they can only defer taxes on $5,500 using an IRA ($6,500 at age 50 or older). There’s also no match with IRA accounts or other types of employer contributions. Workers who earn more than the income limits. For Roth IRAs, the AGI phaseout range is $114,000 to $129,000 for singles and heads of household and $181,000 to $191,000 for married couples, but those who earn more may still be able to convert traditional IRA assets to a Roth. Traditional and Roth IRAs. There are two basic types of IRA: traditional and Roth. For a traditional IRA, you can contribute up to $5,000 a year, with most taxpayers able to deduct up to $3,500 of the contribution from their taxable income. When you withdraw the money, the account income is subject to income tax. The withdrawals have no effect on the amount you can contribute, or vice versa. You can make contributions up to and including the due date for your tax return of that year. For example, for the tax year 2011 you can contribute to your IRA up to April 17, 2012, the filing deadline for federal 2011 taxes. Max out your IRA. You can contribute up to $5,500 to an IRA in 2014, which jumps to $6,500 if you are age 50 or older. To max out this type of account over the course of the year, you would need to contribute $458 per month, or $542 monthly if you are age 50 or older. Take advantage of 401(k) catch-up contributions. Workers age 50 and older can contribute an additional $5,500 to their 401(k) in 2014, or a total of $23,000. To save this much, you'll need to set your twice-a-month 401(k) contributions to $958 or contribute $1,917 per month. 2015 Roth IRA Rules-Eligibility, Income, Contribution Limits, and More. Note: The article below refers to the 2015 tax year. Assuming your IRA was opened by Dec. 31, 2015, you have until the tax filing deadline–April 15, 2016–to make a 2015 contribution. The income/contribution limits may increase for the 2016 tax year. 15 Months to Contribute. One quirk in the IRA laws is that you have 15 months to make a contribution for the current tax year. In 2015, for instance, you can make a contribution any time from January 1, 2015 to April 15, 2016 (the tax filing deadline). Eligibility to make Roth IRA contributions is phased out once an individual's income is between $114,000 and $129,000 in 2014 ($181,000 to $191,000 for couples). But investors who earn more than the income cutoff may still be eligible to convert traditional IRA assets to a Roth. Take advantage of 401(k) catch-up contributions. Workers age 50 and older can contribute an additional $5,500 to their 401(k) in 2014, or a total of $23,000. To save this much, you'll need to set your twice-a-month 401(k) contributions to $958 or contribute $1,917 per month. If you make a $5,000 non-deductible contribution to your Traditional IRA, then attempt to convert $5,000 of your Traditional IRA to a Roth IRA, you will owe the IRS income taxes. For example, let’s say you’re married, 40 years-old, and earn $300,000 per year. Under IRS rules, you’re prohibited from making a direct contribution to your Roth IRA since your $300,000 income exceeds the $183,000 income limit for married couples.
http://www.kiplinger.com/article/retirement/T046-C001-S003-how-to-fund-a-roth-ira-if-you-earn-too-much.html http://www.bankrate.com/finance/taxes/roth-ira-rules-what-are-they.aspx http://money.usnews.com/money/retirement/articles/2014/03/31/who-cant-contribute-to-retirement-accounts http://budgeting.thenest.com/can-still-contribute-ira-collecting-ira-20134.html http://money.usnews.com/money/retirement/articles/2014/01/06/how-to-max-out-your-retirement-accounts-in-2014 http://www.rothira.com/roth-ira-rules http://money.usnews.com/money/retirement/articles/2014/01/06/how-to-max-out-your-retirement-accounts-in-2014 http://www.goodfinancialcents.com/roth-ira-earnings-limit-make-too-much-for-a-roth-ira-nonsense/
how much income can you make and still contribute to an ira