Contribution Phase-Out question
Alright, I'm super frustrated with all the legalese on all the Roth IRA websites for what seems to me like a very simple question, so I'm turning to my most reliable source of information, SI. Somebody please help me, in plain English.
What is the phase out schedule for an individual filer?
"(b) For Roth IRAs, the maximum amount described in paragraph (a) of this A-3 is phased out between certain levels of modified AGI. For an individual who is not married, the dollar amount is phased out ratably between modified AGI of $95,000 and $110,000;"
Is this my key formula??
"Under section 408A(c)(3)(A), in applying the phase-out, the maximum amount is rounded up to the next higher multiple of $10 and is not reduced below $200 until completely phased out."
All I want to know is, how do I figure out what I'm allowed to contribute if my income falls somewhere in between, which it will.
Given an example income of $103,000, how much am I allowed to contribute to my Roth?
Is there a schedule, or a formula?
Thank you in advance for your empathy and help.
Michael |
