Roth IRA
As a working senior, I still can contribute to a Roth IRA. I am having trouble calculating my contribution amount since my AGI is over the $191,000. I am allowed to figure a modified AGI by using AGI minus SSA income. My question is can I determine my modified AGI by just using my gross or net compensation without the other income such as interest, dividends, RMD’s, capital gains, and pensions. On Form 590A, Appendix B, Worksheet 1, this is not specified. If I just use my compensation, I can contribute more. Any help would be appreciated.
Permalink Submitted by Alan - IRA critic on Sat, 2015-05-23 17:49
Income such as taxable SS, pensions and investment income is included in your modified AGI for Roth contribution purposes. P 41 of Pub 590 A is a worksheet to calculate your modified AGI. The only income included in your tax return AGI that is subtracted out is income from a Roth conversion. Appendix B, Worksheet I does not apply unless you are eligible for a traditional IRA deduction. Note that the 2015 Roth IRA MAGI limit for making a regular contribution has increased to 193k. But unless you are doing a Roth conversion, it sounds like your MAGI is too high for a regular Roth contribution and that would also apply to your spouse since you are using joint filing figures.