Contribution Confusion
Posted by mmetz on February 28th, 2010
So you have been a good little saver and planning for your retirement early and opened up a Roth IRA. This is fantastic but just to be clear, there are a few rules to follow for your contributions:
Are you still eligible?
Check your household income against these numbers to make sure you can still contribute:
Single or Head of Household: $105,000 – $120,00
Married Filing Jointly: $166,000 – $176,000
Married Filing Separately: $0 – $10,000
How much can you contribute?
This is an easy one! If you are still eligible to contribute based on your income, you are allowed to contribute up to $5,000 in 2010.
“Hey! I’m over fifty. How much can I contribute?” That’s an easy one! If you are over fifty years old, you are allowed to contribute $6,000.
What other restrictions do I have in 2010?
Not much to say here, because there are no new restrictions to Roth IRAs in 2010! Just make sure you are in an eligible income bracket and don’t contribute over $5,000 ($6,000 if you’re over fifty) total for the year and you are good to go get your save on.
Happy nest egg building!
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