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RETIREMENT
JUNE 1, 2018

What Is the Maximum Amount I Can Contribute to a Roth IRA?

Answered by
Debra Greenberg
Director, Personal Retirement Solutions Group
The amount you can contribute is based on your modified adjusted gross income and tax filing status.
Generally, the limit is $5,500 per year, but the ability to make Roth IRA contributions is subject to income limits. "Roth IRAs were designed for people to consider saving money for retirement because they would get a tax break on the gains on the investments in the retirement account," explains Debra Greenberg, a director in the Personal Retirement Solutions Group at Bank of America Merrill Lynch. As a result, anyone earning above a certain threshold faces limits on how much they can contribute. The amount is based on your modified adjusted gross income (MAGI) and tax filing status.
Comparison of how your income affects contribution limits

What are the income limits to contribute to a Roth IRA?

For 2018, a single individual or head of household with MAGI of $120,000 or less, or a married couple filing jointly with a MAGI of $189,000 or less, may contribute the full allowable amount to a Roth IRA. A single individual or head of household with MAGI between $120,000 and $135,000, or a married couple filing a joint return with MAGI between $189,000 and $199,000, can make reduced contributions to a Roth IRA. But if your MAGI exceeds these amounts, you are not eligible to contribute to a Roth IRA at all. Check IRS rules for more information on the specific contribution limits.

Are catch-up contributions allowed?

If you're 50 or older at any time during the calendar year to which the contributions relate, you can add a $1,000 catch-up contribution, for a total contribution limit of $6,500 per year.

What if I have both a Roth and Traditional IRA?

You can contribute to a Roth IRA and a traditional IRA in the same year as long as your total contributions to all of your IRA accounts don't exceed $5,500 ($6,500 if you're 50 or older at any time during the calendar year to which the contributions relate).
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Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
You have choices about what to do with your employer-sponsored retirement plan accounts. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over an employer-sponsored plan account from your old job to your new employer, take a distribution, or leave the account where it is. Each choice may offer different investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and different types of protection from creditors and legal judgments. These are complex choices and should be considered with care. Visit http://www.merrilledge.com/retirement/rollover-ira or call a Merrill Edge® rollover specialist at 888.637.3343 for more information about your choices.
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