The first step in calculating your reduced Roth IRA Contribution Limit is to calculate your Modified Adjusted Gross Income (MAGI). The first form below will aid you in this calculation. Once you have your MAGI, you can then plug that number into the second form below to calculate your Reduced IRA Contribution Limit. This information was obtained from an IRS page. The second form produces the correct result for the test case given on the IRS page, but I have not performed rigorous testing on it. Please see the disclaimer at the bottom of the page.

1. Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 36
2. Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA, a rollover from a qualified retirement plan to a Roth IRA, and a minimum required distribution from an IRA (for conversions and rollovers from qualified retirement plans only)
3. Will be calculated (1-2)
4. Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 31
5. Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 32
6. Enter any tuition and fees deduction from Form 1040, line 34 or Form 1040A, line 19
7. Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 33
8. Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18
9. Enter any foreign housing deduction from Form 2555, line 50
10. Enter any excludable qualified savings bond interest from Form 8815, line 14
11. Enter any excluded employer-provided adoption benefits from Form 8839, line 30
12. Will be calculated (sum of 3 through 11)
13. Enter: * $169,000 if married filing jointly or qualifying widow(er), * $10,000 if married filing separately and you lived with your spouse at any time during the year, or * $116,000 for all others
MAGI value



Note. If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. When figuring your modified AGI for conversion purposes, refigure your AGI without taking into account any income from conversions or minimum required distributions from IRAs. (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI.) Then go to list item 2 under Modified AGI earlier or line 3 above in Worksheet 2-1 to refigure your modified AGI. If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above.

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1. Enter your modified AGI for Roth IRA purposes
2. Enter: * $159,000 if filing a joint return or qualifying widow(er), * $-0- if married filing a separate return and you lived with your spouse at any time in 2008, or * $101,000 for all others
3. Will be calculated (1-2)
4. Enter: * $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or * $15,000 for all others
5. Will be calculated. Line 3 will be divided by line 4.
6. Enter the lesser of: * $5,000 ($6,000 if you are age 50 or older, or $8,000 for certain employer bankruptcies), or * Your taxable compensation
7. Will be calculated. Multiply line 5 by line 6.
8. Will be calculated. Line 7 will be subtracted from line 6. The result is rounded up to the nearest $10. If the result is less than $200, $200 is entered.
9. Enter contributions from the year to other IRAs
10. Will be calculated. Line 9 will be subtracted from line 6.
11. Will be calculated. The lesser of line 8 or line 10. This is your reduced Roth IRA contribution limit

Disclaimer:
The information contained in this site is of a general nature. It should not be construed as legal advice nor should it be acted upon in your specific situation without further details and/or professional assistance. Any use of information contained in this web site is done so at the risk of the user, and Ryan Persaud is not responsible for the result or outcome of its use. Ryan Persaud does not guarantee, and is not liable for the truthfulness, accuracy, effectiveness, or any resulting effects of the use of any information contained in this web site. It is advised and it is the responsibility of the visitor of this web site to seek proper instruction and/or seek professional assistance in all matters regarding taxes and the IRS. Ryan Persaud is thus held harmless, released of, and users of information contained in this web site assume full responsibility for, any violation of Tax laws and/or IRS procedure, and any other legal liability resulting from use of any information contained in this web site.