Roth IRA Catch Up
If you are looking to open a Roth IRA, it’s good to first know the limitations and requirements involved.
Aside from the contribution limits, another limitation stipulated under the Roth IRA is the restrictions on your income. You can only become eligible to have a Roth IRA account if you satisfy the income limitations. If you are a single filer, you can make full contribution if your compensation yearly is up to $105,000 while you can carry out partial contributions if your income is up to $105,000 – $120,000. For joint filers, their income should fall beneath $166,000 for full contribution and in between $166,000 – $176,000 to complete partial contributions. Those who are married but are filing separately, their income should be $0.00 to be eligible for full contribution and $0.00 – $10,000 for partial contributions.
If you have missed some years or months with investing into your IRA, you can use a Roth IRA catch up to your advantage. By taking advatange of this catch up option, you can make up for some missed investment time.