John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Individual Retirement Accounts – IRAs

ROTH IRA:

"Who is eligible for a ROTH IRA contribution?"

Of course you need to have earned income, but in addition to that your income must be below a certain threshold. For 2007, the income limits for ROTH IRAs are as follows:

• Single taxpayers – phase-out between $99,000 and $114,000 of modified adjusted gross income (MAGI).

• Married filing joint taxpayers – phase out between $156,000 and $166,000 of MAGI.

• Married filing separate (virtually not allowed) – phase out between $0 and $10,000.