The deadline to contribute to your Roth or Traditional IRA for the tax year 2010 is April 17, 2012. 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-OutRange | |
| Single, participates in an employer-sponsored retirement plan | $56,000 – $66,000 |
| Married, participates in an employer-sponsored retirement plan | $90,000 – $110,000 |
| Married, your spouse participates in an employer-sponsored retirement plan, but you do not. | $169,000 – $179,000 |
| Do you qualify to contribute to a Roth IRA? | |
| Single | $107,000 – $122,000 |
| Married, filing jointly | $169,000 – $179,000 |
Harli L. Palme, CFA, CFP®
Financial Advisor
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