Roth IRA qualifications

There are Roth IRA qualifications a person wishing to open a Roth IRA account must qualify. This section of Roth IRAs information website discusses Roth IRA qualifications. You must meet these Roth IRA qualifications before you are eligible to open a Roth IRA account and make a Roth IRA contribution. 

What are Roth IRA qualifications?

Any individual who has taxable income or self employment income for the year may establish a Roth IRA and make Roth IRA contributions. To be eligible to open and contribute to a Roth IRA, Roth IRA qualifications require the individual to have modified adjusted gross income (MAGI) that is less than a certain amount, depending on the tax filing status of the individual.

What are the modified adjusted gross income limits (MAGI limits) for Roth IRAs?

The modified adjusted gross income limits under Roth IRA qualifications requirements are:

• $160,000 for individuals who are married and file a joint tax return.
• $10,000 for individuals who are married, lived with their spouse at anytime during the year, and file a separate tax return.
• $110,000 for individuals who file as single, head of household, or married filing separately and did not live with his or her spouse at any time during the year.

What income count towards Roth IRA qualifications?

For employees, compensation falling under Roth IRA qualifications includes wages, salaries, commissions, bonuses and other amounts paid to the individual for services the individual performs for an employer. Eligible compensation satisfying Roth IRA qualifications requirements can also be found in Box 1 of the individual's Form W-2.

For a self employed business owners or partners in a partnership, compensation is the individual's net earnings from his or her business, less any deduction allowed for contributions made to retirement plans on the individual's behalf, and further reduced by 50% of the individual's self employment taxes.

What income do not count towards Roth IRA qualifications?

The following sources of income are not eligible to be contributions to a Roth IRA under Roth IRA qualifications:

• rental income or other profits from property maintenance
• interest and dividends
• other amounts generally excluded from income