Roth IRA rules

Roth IRA rules are more complicated than traditional IRA rules. Roth IRA rules are discussed on this Roth IRAs information website in detail. Roth IRA rules define the income restriction of who can open a Roth IRA. Under Roth IRA rules, individuals wanting to open a Roth IRA must satisfy income limit. This income limit of Roth IRA rules is discussed below.

Roth ira contribution limits under Roth IRA rules

Under Roth IRA rules, individuals who file taxes as "Single" or "Head of Household" ("Single Filers") may make the Roth IRA contribution of $4,000 maximum (2005-2007), and $5,000 (2008 and later) annual Roth IRA contribution to a Roth IRA if their Modified Adjusted Gross Income ("MAGI") is less than $95,000. This income restrictions are special Roth IRA rules. 

Roth IRA rules for single filers

When it comes to Roth IRA rules, single filers whose MAGI is more than $95,000 but less than $110,000 may make a partial Roth IRA contribution.

Roth IRA rules for joint filers

Roth IRA rules for joint filers state that if the owners of Roth IRAs are Joint Filers with MAGI of up to $150,000, the owner of the Roth IRAs can contribute to Roth IRAs the maximum amount. This opportunity is phased out under Roth IRA rules after the joint filers' MAGI equals or exceeds maximum Roth IRA contribution of $4,000 (2005-2007), and $5,000 (2008 and later) if the MAGI limit of Roth IRA rules described above for joint filers is met. This income definition is special under Roth IRA rules.

Roth IRA rules for catch up Roth IRAs contributions

The Roth IRA rules also state that, for Roth IRAs, the catch up Roth IRA contributions of $500 (2003-2005), $1,000 (2006 and later) are permitted of any individual who is age 50 or older.

Modified AGI or MAGI in Roth IRA rules

Roth IRA rules say that, in Roth IRAs, modified AGI,  used to determine your eligibility to make Roth IRA contributions (regular Roth IRA contribution or rollover Roth IRA contribution), is calculated by adding certain items of income to your AGI. These Roth IRA rules are discussed in this Roth IRAs website.

Roth IRA rules for non deductible Roth IRA Contributions:

Under Roth IRA rules, annual Roth IRA contributions are not tax deductible and do not reduce current taxes. These Roth IRA contributions are made with after tax dollars. But because taxes have already been paid, Roth IRA contributions will be tax free when withdrawn.