The Roth IRA income limits are an important eligibility criterion of the Roth IRA, and an important criterion to be considered before selecting the right investment. The Roth IRA income limits chance every year depending on the income tax laws, and the two broad categories of compensation or income limits effect the eligibility requirements of the Roth IRA and these income limits are also considered while making contributions to a Roth IRA account. The owner has to have up-to-date information on the limits for year here are the Roth IRA income limits for the year 2010
Income limit is a factor that is applied on the investments basically is a condition on investment in a simpler way the income limit is imposed so that if an individual makes more money, then he/she may not be eligible to contribute to a Roth IRA. There is an income threshold where owners are eligible for a reduced contribution these are called the phase-out limits.
Here the income limit is considered on the basis of the MAGI i.e. modified adjusted gross income these calculations are done when the owner has completed the income tax formalities, in case the exact MAGI is not known the MAGI of last year can be used for calculations.
The Roth IRA income limits for the year 2010 are for married couples
Married couples who file jointly can contribute the maximum to a Roth IRA only if their modified adjusted gross income (MAGI) is below $167,000. But if the MAGI is between $167,000 and $177,000, then they can contribute some amount less the full limit. If their income exceeds $177,000, they are not eligible to contribute to a Roth IRA for 2010.
2010 Roth IRA Income Limits for Singles
For single individuals the Roth IRA income phase-out limit is $105,000 to $120,000. In other words, an individual with a MAGI of $100,000 can contribute the maximum to the Roth IRA account but if the MAGIis$125,000 then the person cannot contribute at all.