Roth IRA

Contribution Eligibility and Limits
Modified AGI limit for 2008 Roth IRA contributions. For 2008, your Roth IRA contribution limit is reduced (phased out) in the following situations:
 * Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $159,000. You cannot make a Roth IRA contribution if your modified AGI is $169,000 or more. [Partial contributions allowed between $159,000-$169,000].
 * Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2008 and your modified AGI is at least $101,000. You cannot make a Roth IRA contribution if your modified AGI is $116,000 or more. [Partial contributions allowed between $101,000-$116,000].
 * Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.[Partial contributions allowed between -0- and $10,000].

Modified AGI. Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your tax return modified as follows.

1.Subtract the following:
 * Conversion income. This is any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA.
 * Minimum required distributions from IRAs, (for conversions only).

2. Add the following deductions and exclusions:
 * Traditional IRA deduction,
 * Student loan interest deduction,
 * Tuition and fees deduction,
 * Domestic production activities deduction,
 * Foreign earned income exclusion,
 * Foreign housing exclusion or deduction,
 * Exclusion of qualified bond interest shown on Form 8815, and
 * Exclusion of employer-provided adoption benefits shown on Form 8839.

Beginning in 2009, contribution limits will be inflation-adjusted in $500 increments.

Links

 * IRS Publication 590: Roth IRAs
 * Fairmark.com guide to Roth IRAs and related accounts

Papers: Roth IRAs

 * Reichenstein, William, "Tax-Efficient Sequencing Of Accounts to Tap in Retirement" TIAA-CREF Institute (October, 2006). Available at http://www.tiaa-crefinstitute.org/research/trends/docs/tr100106.pdf

Papers: Roth 401-k and Roth 403-b Plans

 * Ahern, Michael, Ameriks, John, Dickson, Joel, Nestor,Robert, Utkus Stephen, "Tax Diversification and the Roth 401(k)" Vanguard Center for Retirement Research (October, 2005. Available at https://institutional.vanguard.com/iip/pdf/CRR_Roth_401k.pdf
 * McQuarrie,Edward F. Ph.D., " Thinking About a Roth 401(k)? Think Again" Journal of Financial Planning, (July, 2008)
 * Reichenstein, William, Rothermich, Douglas, Waltenberger,Alicia, "The Expanding “Roth” Retirement Account" TIAA-CREF Institute (March, 2006). Available at http://www.tiaa-crefinstitute.org/research/trends/docs/tr030106.pdf