sam1000
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Roth IRA eligibility |
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Had a quick question. My annual income is $116,500. I contribute 6% of my pay to my 401k which is $6990. Adding the standard deduction of $5500 and a personal exemption of $3300 my AGI should be 100710. However, I will probably itemize and deduct state taxes so my AGI would be less than 100k.
This would satisfy the income limit and would allow me to contribute the max to a Roth, am I correct? Is this a good strategy?
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Tue May 09, 2006 11:57 pm |
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sam1000
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quote: Originally posted by coaster The income number used is Modified Adjusted Gross Income, NOT AGI. The difference is explained here:
http://www.fairmark.com/rothira/modagi.htm
thanks coaster, according to that description it seems that I should be okay. It says that to calculate MAGI I'm NOT required to add back deductions made to an Employer 401k plan.
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Wed May 10, 2006 5:33 pm |
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angelface
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damn 116500 is hell a lot of money
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Fri Sep 22, 2006 6:27 am |
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BlankenshipFP
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This is an old, old, post, but maybe Sam1000 is still watching it:
In order to calculate AGI (for the purpose of later calculating MAGI), you are not allowed to take your standard (or itemized) deductions or personal exemptions.
AGI is the number that is in the last box at the bottom of the front page of your 1040, and the first box at the top of the back page of 1040, before deductions and exemptions are taken out.
Given what you posted, Sam1000, you are likely above the limit for Roth IRA contributions...
Hope this helps (and hope it wasn't too late!) -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Sep 22, 2006 9:40 pm |
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sam1000
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Thanks Jim, point noted. I check this forum from time to time Lots of good information here.
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Thu Oct 05, 2006 8:22 am |
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