No. of Recommendations: 0
Spouse and I find ourselves in the no man's land of having a household income between 150K and 160K for 2004. Where can I find the formula(e) for calculating how much we can each contribute to our Roth IRAs for the year?

We are both over 50 and wish to contribute the maximum allowed.

Thanks much in advance.
Print the post Back To Top
No. of Recommendations: 1
For each of your contributions, use this formula:

(160,000-AGI)/10,000*3,500

then round down to the nearest $10.

Nick
Print the post Back To Top
No. of Recommendations: 0
Thanks much, yobria.

JKL
Print the post Back To Top
No. of Recommendations: 0
Just curious ...

Not that I would, but what's to keep taxpayers who have a household income of $150K-$160K to contribute the full amount (e.g., $3000 or $3500 in 2004 depending on age) to a Roth IRA?

The 1099 doesn't seem to include information of this type. Is there some other kind of communication between the IRS and brokerage houses regarding this issue?
Print the post Back To Top
No. of Recommendations: 0
Yes, the brokerage houses, mutual fund companies, and banks all have communication with the IRS. It simply isn't smart to try to get away with something. Eventually, it will catch up to you and put in a worse position than you were in the first place.

JLP

http://AllThingsFinancial.blogspot.com
Print the post Back To Top
No. of Recommendations: 2
situate wrote:

Spouse and I find ourselves in the no man's land of having a household income between 150K and 160K for 2004. Where can I find the formula(e) for calculating how much we can each contribute to our Roth IRAs for the year?

We are both over 50 and wish to contribute the maximum allowed.

----------------------

The "Tax Guide For Investors" by Fairmark Press is pretty easy to follow. It has quite a bit on the Roth IRA including Phase-Out Rules. It may be what you are looking for:

http://www.fairmark.com/rothira/phaseout.htm

Regards,
Bill


Print the post Back To Top
No. of Recommendations: 0
The "Tax Guide For Investors" by Fairmark Press is pretty easy to follow. It has quite a bit on the Roth IRA including Phase-Out Rules. It may be what you are looking for:

http://www.fairmark.com/rothira/phaseout.htm


==============================

Thanks, Bill. This site was very helpful.

JKL
Print the post Back To Top
No. of Recommendations: 0
<<<Spouse and I find ourselves in the no man's land of having a household income between 150K and 160K for 2004. Where can I find the formula(e) for calculating how much we can each contribute to our Roth IRAs for the year?>>>

Make sure you don't confuse income with AGI.
Print the post Back To Top