Roth IRA Contribution

You can fund a Roth IRA either through Roth IRA contributions or a Roth IRA conversion. While making a Roth IRA contribution has income and tax filing status restrictions, funding a Roth IRA through a Roth IRA conversion has no limitations on income or tax filing status as of 2010.

Roth IRA Conversion

Roth IRA Limits

To make a ROTH IRA contribution, you must:

1). Have some form of taxable compensation to contribute in the form of wages, tips, salary, commissions, self-employment income, or other taxable income.

2). Have taxable compensation that does not exceed the Roth IRA income limits as outlined below.

Roth IRA Contribution Limits 2011

If you are under 50 years of age before the end of 2011: Your Roth IRA contributions are limited to $5,000 for 2011. If you choose to contribute to both a traditional IRA and  a Roth IRA, this limit can be split between a Roth IRA and a traditional IRA, but the combined limit is still $5,000.

Your Roth IRA contribution is also limited to the smaller of $5,000 or the total amount of your taxable compensation for 2011.

If you are 50 years of age or older before the end of 2011: Your Roth IRA contribution is limited to the $6,000 for 2011. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is still $6,000.

Your Roth IRA contribution is also limited to the smaller of $6,000 or the total amount of your taxable compensation for 2011.

Roth IRA Contribution Limits 2011 Summary

Year	Under age 50	Age 50+
2011	$5,000	$6,000

The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income below.

2011 Roth IRA Income Limits

If You Have Taxable Compensation and Your Filing Status Is…	And Your Modified AGI Is…	Then…
married filing jointly or qualifying widow(er)	Less than $169,000	you can contribute up to the limit.
	at least $169,000 but less than $179,000	the amount you can contribute is reduced.
	$179,000 or more	you cannot contribute to a Roth IRA.
married filing separately and you lived with your spouse at any time during the year	zero (-0-)	you can contribute up to the limit.
	more than zero (-0-) but less than $10,000	the amount you can contribute is reduced.
	$10,000 or more	you cannot contribute to a Roth IRA.
single, head of household, or married filing separately and you did not live with your spouse at any time during the year	less than $107,000	you can contribute up to the limit.
	at least $107,000 but less than $122,000	the amount you can contribute is reduced.
	$122,000 or more	you cannot contribute to a Roth IRA.

You can make a Roth IRA contribution regardless of your participation in a qualified retirement plan, and regardless of age. For example, a teenager working a side job can contribute to a Roth IRA, and an individual 70 1/2 or older can make Roth IRA contributions from taxable income as long as they meet the other requirements above.

The Roth 401(k) has no income limits, so you can contribute up to the maximum permitted under 401(k) contribution limits each year regardless of salary. The Roth IRA contributions, on the other hand, are reduced when certain income levels are reached as noted above. This means that high income earners can now have access to the benefits of the Roth by way of the Roth 401(k).

From Roth IRA Contribution to Roth IRA Conversion

IRA vs Roth IRA

Roth IRA Rules

Roth IRA Recharacterization

Roth 401k

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