Two general observations:1. Given two possible policies on the part of IRS, your hunch should be that IRS has chosen the policy that hurts tax payers more.2. When people post important, verifiable facts, it would be a great kindness of they would also post a reference or at least acknowledge that they don't have a referenceNow, to answer your question. Please see http://www.irs.ustreas.gov/forms_pubs/pubs/p5900202.htm which is a U. S. Treasury site and therefore, I suppose, authoritative and probably even reliable. It says (in part) How Much Can Be Contributed? The contribution limit for Roth IRAs depends on whether a contribution is made only to Roth IRAs or to both traditional IRAs and Roth IRAs. Roth IRAs only. If a contribution is made only to Roth IRAs, the maximum contribution limit is the lesser of $2,000 or your taxable compensation. If your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced. Roth IRAs and traditional IRAs. If you contribute to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs is the lesser of: The maximum contribution limit reduced by all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or The maximum contribution limit reduced because your modified AGI is above a certain amount, as explained next. Simplified employee pensions (SEPs) are discussed in chapter 4. Savings incentive match plans for employees (SIMPLE) are discussed in chapter 5. Contribution limit reduced. If your modified AGI is above a certain amount, your maximum contribution limit is gradually reduced. Use Table 2.2 to determine if this reduction applies to you. Chips, who is not an expert
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