Roth IRA Limits For 2010
A Roth IRA continues to be a popular investment choice for building a secure retirement. As with most investments, the more money you put in, the more money you’ll get out. Unfortunately, there are limits to how much you can put into your account. There are also limits on how much money you can make and still put money into your account. Here’s a quick review of what those limitations are.
Roth IRA Contribution Limits
As of 2010, individuals can contribute as much as $5000 per year. The contributions into a Roth IRA are made with after-tax money. If you are over the age of 50, you can make catch-up contributions; you can contribute as much as $6000 per year to your Roth IRA account.
Roth IRA Income Limits
There are limitations to how much money you can make and still contribute to a Roth IRA. As of 2010, if you are an individual, you can make as much as $105,000 and still make the full $5000 or $6000 contribution, depending on your age. If you make between $106,000 and $120,000, you can make a partial contribution to the Roth IRA. If you make more than $120,000, you cannot contribute to your Roth IRA account.
There are also phase-out limits that allow you to make a partial contribution if your income is within a certain range.
If you are a married couple and you file your taxes jointly, you can make more money and still qualify for Roth IRA contribution. You can make as much as $167,000 and still make a full contribution to your Roth IRA. If you make between $167,000 and $177,000, you will be eligible to make a partial contribution. If you make more than $177,000, you can forget about making a contribution to your Roth IRA; you don’t qualify. If that is the case, you may want to consider investing in a traditional IRA because there are no income limits associated with it.
Here’s how it looks:
| Your Tax Filing Status | Tax Year | Full Contribution | Partial Contribution | Not Eligible |
| Single/Head of Household | 2010 | Up to $105,000 | $105,000-$120,000 | Above $120,000 |
| Married Filing Jointly | 2010 | Up to $167,000 | $167,000-$177,000 | Above $177,000 |
| Married Filing Separately | 2010 | N/A | $0-$10,000 | Above $10,000 |
Age Limits
With the Roth IRA, there are no age limits to be concerned with; you can contribute to the account regardless of your age. However, except under certain “qualified” circumstances, you have to be 59 1/2 in order to start taking withdrawals out of the account and avoid withdrawal penalties.
