Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi Everyone,

Because I have always had an employer-funded pension plan, I was always told that I did not qualify for regular IRA deductions.

Now, with the Roth IRA, it appears that my new wife and I (I'm 34, by the way) could finally start a retirement-specific account. But I have one major question.

It says that the Joint-filer AGI limit is 150K, with the phase out being 150-160K. While we don't currently make quite that much, it shouldn't be more than 2 or 3 years before our AGI passes those limits.

What happens when people make any number of years of contributions to a Roth IRA, but eventually pass through the AGI limits? I would assume that no contributions can be made in any year where they have too much AGI, but what about their previous contributions? Do they continue to be treated as before, until they are finally withdrawn according to the plan?

And what about cases where a person or couple's AGI breaks the limit sporadically, changing from year to year. That could be the case with us.

I'd love any help on this.



Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.