No. of Recommendations: 0
Tax filing status is married, filing seperately and my taxable income is around 40,000. Am I eligible for Roth Ira? I know there is much info about eligibility and income and phase-out, but I can not make sense of it. I am vested in employer's pension and also take advantage of 457 deferrals through employer.
Print the post Back To Top
No. of Recommendations: 0
Tax filing status is married, filing seperately and my taxable income is around 40,000. Am I eligible for Roth Ira?

No. With this filing status Roth contribution eligibility is completely phased out at $10,000 AGI, and you cannot convert traditional to Roth at any income level.

Details are in IRS Publication 590.

TMF ExRO
Phil Marti
Print the post Back To Top
No. of Recommendations: 0
Question asked..
"Tax filing status is married, filing seperately and my taxable income is around 40,000. Am I eligible for Roth Ira?"

Phil posted...
"No. With this filing status Roth contribution eligibility is completely phased out at $10,000 AGI, and you cannot convert traditional to Roth at any income level."


Oooouchh!. I thought married and filling jointly was bad.

In doing away with the marriage penalty will this be changed?

BGP


Print the post Back To Top
No. of Recommendations: 0
In doing away with the marriage penalty will this be changed?

Nope. It might make enough difference that it would be to your advantage to file jointly, but there's nothing in those provisions that would directly address the Roth phaseouts. They're there to prevent manipulation of the income limits on Roths.

Not that you asked, but except for Ohio residents it's rare that separate returns are to the taxpayers' advantage. Are you sure you're figuring everything right?

TMF ExRO
Phil Marti
Print the post Back To Top
Advertisement