Roth IRAs are retirement accounts in which the money put into the account grows tax-free instead of tax-deferred like Traditional IRA accounts. Additionally, the money contributed into a Roth IRA is not allowed to be deducted for the year the contribution was made. Funds in IRAs must be held until 59 1/2 years old to not receive a 10-percent penalty from the IRS. Placing money into an IRA depends on income, age and marital status.
According to the IRS, the maximum a person can contribute to a Roth IRA is $5,000 unless they qualify for catch-up contributions (described in Section 5). This is the maximum, but those who qualify for IRA contributions are not required to contribute the maximum and can contribute the minimum according to the investment vehicle limitations.
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Single Filers Qualifications
A person who is single must make less than $105,000. Those making between $105,000 and $120,000 can make a partial contribution.
Married Filing Jointly Qualifications
Married couples filing tax returns jointly can make a full contribution for each spouse if their adjusted gross income is less than $166,000. Those who make between $166,000 and $176,000 can make a partial contribution.
Married Filing Seperately Qualifications
Married couples who file separate tax returns must have the spousal-adjusted gross income of less than $10,000 to contribute. The primary breadwinner would then need to meet qualifications listed in Section 2.
Those who are more than 50 years old are allowed to contribute an additional $1,000 totaling $6,000 into the Roth. This is referred to as a "Catch-Up Contribution" that helps those closer to retirement with more ability to contribute more.