TRANSCRIPT:

Hi Greg Vojtanek of Fade In Financial. Today I want to quickly answer that question “Can I contribute to my Roth IRA?” Not should I, but can I? There are just a few rules that you have to follow.

First of all, you have to have earned income. So between you and your spouse, if you file Married Filing Jointly, you must have earned income. This could also mean residuals.

Secondly, did you contribute at all to a Traditional IRA? Because the combined amounts between a Traditional IRA and a Roth IRA cannot exceed $8,000 if you’re age 50 or over. It can’t exceed $7,000 combined if you’re under the age of 50.

Lastly is the income limit depends on how you file your taxes. Do you file them as a Single person or Married Filing Jointly?

If you file Singly, then you have to make less than $146,000 for the year 2024, in order to make a full contribution to your Roth IRA. It starts to phase out after that income amount.

If your filing status is Married Filing Jointly, then combined you can’t make more than $230,000. Again, it starts to phase out after that amount.

This isn’t everything to consider. But this, I hope, answers the question of, “Can I contribute to my Roth IRA?” Your situation is different so please, as always, do what is right for you. Thank you very much. I hope this was helpful.