Am I Eligible For a Roth IRA…And Should I Have One?

Reasons for a Roth IRA

  1. Tax Rate Question Eliminated
  2. No RMD’s
  3. Tax Free Income & Profit For LIFE
  4. Contributions – Immediate Access Anytime*
  5. Outlives You For Over 100 Years!
  6. Contributions Allowed after 70.5 Years Old

*Does not necessarily cover conversions, 5 year rule may apply


Roth Contribution Eligibility

Annual Regular Roth IRA Contributions Based on Modified Adjusted Gross Income

The maximum 2012 annual regular contribution limit per individual is phased out depending upon the filing status  and modified adjusted gross income of the individual – $125,000 Single, $183,000 Married

Is Your Traditional Contribution Deductible?

Remember; whether a deduction is allowed does not in any way prevent the individual from making a contribution subject to the maximum contribution limits. (IRC Sec. 219(g))

$125,000 Single, $183,000 Married, $112,000 Married in a Qualified Plan, $68,000 Single in a Qualified Plan – it does not matter if you are converting to a Roth.

Income Limits for Roth Conversion Eliminated

Under prior law, a taxpayer was not permitted to make a conversion to a Roth IRA from any plan (other than another Roth IRA) if the “taxpayer’s AGI” for the year during which the distribution (or transfer) was being made from the other plan exceeded $100,000 …… §408A(c)(3)(B) IRC 


You Can Have a Roth IRA

  1. Convert an existing Traditional IRA, 401(k), 403(b), SEP or SIMPLE
  2. Contribute to a new or existing Traditional IRA and convert 30 seconds later

What Next

  • Consult with your advisor
  • Read “Keep It” by Joe Luby
  • Let CamaPlan know if you want to convert