2018 Roth IRA Income Limits: What You Need to Know
Roth IRAs can make it easier to build up retirement savings. By contributing to a Roth, you can have your money grow on a tax-free basis throughout your career and beyond, with no tax due when you take withdrawals in retirement. It's hard to match the Roth's tax benefits, but there are rules about how much you can contribute to a Roth IRA each year. The general Roth contribution limits for 2018 are $5,500 for those younger than 50 or $6,500 if you're 50 or older, which is the same as it was in 2017. However, income limits can reduce or eliminate your ability to put money into a Roth.
The income limits for 2018 Roth contributions depend on your tax filing status and how much money you make. To start out, you have to figure your modified adjusted gross income. That includes all income but deducts any taxable amount that came from a conversion of a regular IRA or 401(k) to a Roth IRA, as well as deductions on the first page of your tax return such as moving expenses, health savings account deductions, and penalties for early withdrawal on bank CDs.
Once you have that amount, you can look in the chart below to see where you land.
Source: Fool.com
