Funding a Roth

TO CLAIM A TAX deduction for your traditional IRA contribution, much hinges on whether you’re covered by a retirement plan at work. That doesn’t come into play with a Roth IRA. Instead, all that matters is your income.

If you are single or head of household and you have enough earned income, you can fully fund a Roth IRA in 2022 if your modified adjusted gross income is less than $129,000. The amount you can contribute is phased out if your income is between $129,000 and $144,000. Above $144,000, no contribution is allowed. For 2023, the phaseout range is $138,000 to $153,000.

If you are married filing jointly, your ability to fund a Roth phases out if your combined income is between $204,000 and $214,000 in 2022 and between $218,000 and $228,000 in 2023.

What if you’re eligible to make only a partial Roth contribution of, say, $3,500 out of 2023’s possible $6,500? You can put the remaining $3,000 in a traditional IRA, though your contribution won’t necessarily be tax-deductible.

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