One of the main pitfalls of the Backdoor IRA is the famous "pro-rata rule". This rule requires that all of a taxpayer's ...

How the Roth IRA works A Roth IRA doesn’t provide any immediate tax benefits. So, if you decide to contribute $4,000 to a Roth IRA this year, it’s all after-tax money, meaning you won’t get ...

Access for High-Income Earners Normally, individuals with a modified adjusted gross income (MAGI) above a certain threshold cannot directly contribute to a Roth IRA. For 2025, the phase-out ranges ...

The Roth IRA also has no rules that require you to start taking distributions at age 73. You can leave your money in the account indefinitely, which makes it a great spot for money you want to ...

Roth IRAs can be an attractive addition to your portfolio, but boy, are they surrounded by rules and regulations. It's easy to become confused.

The Roth IRA is an Individual Retirement Account created in the United States in 1997. Unlike the Traditional IRA, which ...

They cannot contribute to a Roth at all if their MAGI is above $165,000. For married couples filing jointly, the income phaseout range increased to between $236,000 and $246,000, up from between ...

An IRMAA Example Since retirement funds transferred from a tax-deferred account to a Roth IRA are treated as ordinary income, converting a $235,000 IRA could significantly increase MAGI and result ...

If your MAGI is more than $236,000 but less than $246,000, the amount you can contribute is reduced. If your MAGI is greater than $246,000, you cannot contribute to a Roth IRA.

In short, whether you can contribute to a Roth IRA or benefit fully from a Roth IRA depends on your modified adjusted gross income (MAGI) and tax filing status. For example: Data Source: Vanguard.