Roth IRA Income Limits with Salary and Social Security
Have a client who makes 210-230k gross (depending on bonus) at age 70 plus Social Security of 50k per year. Client is married and wife does not work. Currently they file jointly.
Questions:
- Does social security income count towards MAGI when factoring in the income limits in order to contribute to a ROTH?
- Can he fund 2 Roth IRAs for him and his wife at 8k each, if his AGI is under the limits including his SS?
- Is he not allowed to fund the Roths?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Tue, 2025-10-14 14:47
The taxable amount of SS is included in MAGI and the taxable amount is limited to 85% of the gross SS income. If their joint MAGI is not too high, a spousal Roth contribution can be made for the wife as well. If MAGI ends up in the phaseout range (236k-246k) both of their max Roth contribution limits will be reduced by the same amount. If over 246k no Roth contribution is allowed, and it looks like that will be the case.