If you’re eligible to contribute up to the full amount, you should be beaming.
Unlike a traditional IRA, the amount you make has no influence on Roth IRA deductibility.
That sounds like good news, but please hold your confetti: It’s actually moot news.
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,” “sorta” and “sorry, not this year, cowboy” scenario.
Roth IRA contribution limits are based on household income, and those at higher incomes often find themselves squeezed out of Roth eligibility either partially or completely.
A Roth has income limits, but there are no such restrictions with traditional IRAs.
Titans of industry and everyday workers alike are eligible to open and contribute up to the traditional IRA contribution limits allowed by the IRS.
The IRS defines “income” differently than the rest of us for its IRA calculations.
They base deduction and contribution parameters on your modified adjusted gross income, or MAGI.
One thing that Roth and traditional IRAs have in common is that in both accounts, earnings on your investments grow tax-free.