If your modified AGI (Adjusted Gross Income) is within the allowable range to make a contribution to a Roth IRA based on your filing status, figure your reduced contribution limit as follows.

  1. Stat with your modified AGI.
  2. Subtract form the amount in (1):
    1. $150,000 if filing a joint return,
    2. $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
    3. $95,000 for all other individuals.
  3. Divide the result in (2) by $15,000 ($10,000 if filing a joint return of married filing a separate return).
  4. Multiply your contribution limit (before reduction by this adjustment but after reduction for any contributions to traditional IRAs) by the result in (3).
  5. Subtract the result in (4) from your contribution limit before this reduction.  The result is your reducec contribution limit.

TIP

Round your reduced contribution limit up to the nearest $10.  If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200.

Click here for an example.

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