Contribution amount
Was injured at work and have been off the job collecting Workers Compensation since January 2009, I only about earned $2,100. gross for 2009, can I contribute the full $2,100. to a Roth or can I only contribute whatever my AGI will turn out to be once I do my taxes?? – Thanks Alan!
Permalink Submitted by Jose Morales on Mon, 2010-01-04 21:51
MAGI is used for determining Roth contribution eligibility. The rules for the actual contribution are “the lessor of $5,000 or 100% or earned income/compensation.” Earned income and MAGI are both defined differently, depending on whether you are referring to contribution eligibility or the allowable contribution amount.