2008 Roth IRA Income Limit
Is there any plan by the government to raise the the Income Limit from the current 150K-160K phase out ?
How about getting rid of the phase out completely and just go to a fixed limit ?
Is there any plan by the government to raise the the Income Limit from the current 150K-160K phase out ?
How about getting rid of the phase out completely and just go to a fixed limit ?
Permalink Submitted by Al Fry on Mon, 2007-11-26 19:19
I believe the phase out for 2007 begins at $156k. In 2008, it will begin at $159k.
Permalink Submitted by Alan Spross on Mon, 2007-11-26 19:34
Al is correct.
The 2008 phaseout range is 159,000 and at 169,000 MAGI no regular Roth contribution is allowed. Phaseouts do help the limits stay in step with inflation, and seem to be included in virtually all retirement related tax legislation these days.
If not, you could look at the SS taxation thresholds and the AMT situation to see what can happen over a couple decades when limits are not indexed.
However, if you cannot make regular contributions, the recent change to eliminate the Roth conversion income limits after 2009 can enable a high income taxpayer to use conversions to fund a Roth starting in 2010.