Roth IRA Contribution Limits and Income Phaseout Schedule

September 28th, 2006  |  Published in Investing  |  8 Comments

The Roth IRA contribution limits are:

Year 49 And Under 50 And Over
2005 $4,000 $4,500
2006-7 $4,000 $5,000
2008 $5,000 $6,000

As you can see, if you’re over 50 then you’re given a “catch-up” contribution.

The income phaseout schedule is based on your modified adjusted gross income, which is your income minus some deductions. The income phaseout schedule is:

Filing Status Income Floor Income Ceiling
Single, Head of Household $95,000 $110,000
Married Filing Separately $0 $10,000
Married Filing Jointly $150,000 $160,000

The phaseout is linear, so if you are single then at $95,000 then you could contribute $4,000 in 2006. If you made $110,000 then your contribution is $0. If you made $100,000, then your contribution would be limited to $1333.33.

One little known fact: If you’re under the income ceiling, your phaseout’s minimum contribution is $200. So, if your MAGI were $109,999, your contribution limit is $200, not some miniscule proportionate number.



  1. The Carnival of Personal Finance ‘68 Hits the Oregon Trail | Punny Money says:

    October 2nd, 2006 at 4:13 am (#)

    […] I think the first thing I’ll do is change jobs. Maybe I’ll become a money manager, one who people can trust. And maybe I’ll be able to reach our Roth IRA contribution limits, possibly even end up saving 12% of my salary for retirement. And for once, we’ll start to accumulate savings instead of living paycheck to paycheck. Yes, that would be quite nice–to be able to secure my retirement without stress or worries. […]

  2. Jill says:

    November 7th, 2006 at 10:37 pm (#)

    What if you put in $4k at the beginning of 2007, but at the end of the year you’ve gone over the income limit? What do you do? Take it out? What about the earnings on the money?

  3. retirehappy says:

    January 20th, 2007 at 3:33 pm (#)

    You can reclassify a portion of it to a Traditional IRA or withdraw it and pay some penalties, I recommend reclassifying it.

  4. Ann says:

    July 16th, 2007 at 9:48 am (#)

    If I make less than 110K and contribute to a 403B, can I still contribute to a Roth?

  5. retirehappy says:

    July 23rd, 2007 at 2:54 pm (#)

    It depends on how high your AGI is…

  6. Rachell says:

    November 20th, 2007 at 10:41 pm (#)

    Can I contribute to my existing roth ira(now) for the year 2008?

    Thank you,

  7. retirehappy says:

    November 22nd, 2007 at 10:08 am (#)

    No you can’t contribute for the future

  8. Jamie says:

    June 23rd, 2009 at 11:48 am (#)

    Can I contribute to both a Traditional IRA and a 401K, and would the limits be different?