Your Roth IRA Income Limits are re-evaluated every year along with the other factors that affect your contribution limits, however, your income limits are probably the most important change every year because you need to know if you are eligible to contribute or not.

Classes

Before you continue make sure that you know how to calculate your Modified Adjusted Gross Income (MAGI).

Like always there are the 2 main classes depending on your marital status and how you are filing your taxes for the year. Both major and minor classes are covered in the sections below about your Roth IRA Income Limits 2012.

Single

If you are a single resident of the United States you are given the most flexibility in your eligibility based on your Income Limits, this will not change year to year. The changes that occur each year affect the upper and lower limits that determine how much you can contribute and whether or not you are eligible.

For 2012:

· If your taxable income is below $110,000, you can contribute the maximum amount to your savings account

· If your income is in-between $110,000 and $125,000 you are still allowed to contribute to your account, but only a reduced amount

Married

If you are married there are 2 categories that you can fall into when filing your taxes. You can either file jointly as most married couples do, or you can file separately if you have been separated.

Filing Jointly

The following limits apply on your contributions if your combined taxable income is:

· Under $173,000: You can contribute the maximum amount to your Roth IRA

· $173,000 to $183,000: The standard $10,000 gap is the area where you can make a contribution, but only a reduced amount

· Over $183,000: You are not allowed to contribute to your Roth IRA, but this doesn’t mean you are not eligible to contribute to other types of savings accounts like 401ks

Separated

If you have been separated, but not living apart for the entire year you have to file as married but separated. If you have been living apart for the year the same conditions that a single has apply to you as well.

Unfortunately this category is extremely limited in what can be contributed in order to ensure that people are not able to abuse the system. There are 2 categories you can fall into, which are identical to 2011:

· You make less than $10,000: You can contribute a reduced amount up to your taxable income

· You have a taxable income over $10,000: You are not permitted to contribute

My name is Gareth Burnham and investing is a passion I have had my entire life. I enjoy learning and writing about different types of investments, like the Roth IRA. To learn more about your current Roth IRA Contribution Limits 2011 if needed, refer to other articles. If you would like the most current information please visit: Roth IRA Contribution Limits 2012.