Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
2) Wow, that was a very good to find out. This year my salary got passed the limit for Roth. But I am still eligible for 2012. Will see what to do this year.

You may have misstated this and not really meant 'salary' - but your eligibility for a Roth is based on your 'MAGI' or 'Modified Adjusted Gross Income', not your 'salary'. You can figure your MAGI using worksheet 1-1 of IRS Pub 590 http://www.irs.gov/pub/irs-pdf/p590.pdf In general, it starts with your AGI from your 1040 (which already removes pre-tax 401(k) contributions and pre-tax insurance premiums from your salary), and then makes some further adjusments.

So, even with a salary that starts out over the limit, if you are making pre-tax contributions to your 401(k), you can make yourself eligible for a Roth.

AJ
Print the post  

Announcements

Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.