Roth IRA Overview

Eligibility

While the Roth IRA is a great choice as a savings account, not everyone is eligible to make contributions to one. Individuals must meet requirements based upon their tax filing status in order to be eligible for a Roth IRA. The requirements as of 2018 are as follows:

Married individuals who jointly file their taxes must have an income less than 189,000 dollars per year to make the maximum contribution to this account. Those who file single must make less than 120,000 dollars for the maximum contribution. There is also the opportunity to make a partial contribution in both cases, and this opens up Roth IRAs to individuals and married couples with slightly higher incomes. For partial contributions, married couples must earn less than 199,000 dollars (but above 189,000 dollars), and single individuals less than 135,000 dollars (but above 120,000 dollars). It is advisable to speak with a financial advisor before dealing with a Roth IRA to verify your eligibility requirements.

Continue reading to learn more about the maximum contribution amounts individuals and couples can make to a Roth IRA.