The deadline to contribute to your Roth or Traditional IRA for the tax year 2010 is April 15, 2011. You can contribute $5,000 or the amount of earned income for the year, whichever is less. If you’re over 50, you can contribute an additional $1,000.
Your income determines if you qualify for a tax-deductible Traditional IRA contribution, or if you qualify to make a Roth IRA contribution.
|Do you qualify to deduct your Traditional IRA contribution?|
|If your income is less than the beginning of the phase-out range, you qualify. If your income is over the phase-out range, you do not. If your income falls inside the range, you partially qualify.|
|Modified Adjusted Gross Income Phase-Out Range|
|Single, participates in an employer-sponsored retirement plan||$56,000 – $66,000|
|Married, participates in an employer-sponsored retirement plan||$89,000 – $109,000|
|Married, your spouse participates in an employer-sponsored retirement plan, but you do not.||$167,000 – $177,000|
|Do you qualify to contribute to a Roth IRA?|
|Single||$105,000 – $120,000|
|Married, filing jointly||$167,000 – $177,000|
Harli L. Palme, CFP®