Individual Retirement Accounts – IRAs
"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 2011, the income limits for ROTH IRAs are as follows:
Single taxpayers – phase-out between $107,000 and $122,000 of modified adjusted gross income (MAGI).
Married filing joint taxpayers – phase out between $169,000 and $179,000 of MAGI.
Married filing separate (virtually not allowed) – phase out between $0 and $10,000.