October 8, 2019 - Douglas Myser

Important 2019 roth irs rules. A Roth IRA is a form of tax benefited retirement account. With Roth IRAs your contributions are not tax deductible, but your eventual withdrawals will be. This makes Roth IRSs a great way to ensure your financial security well into retirement. However, there are many rules about who can contribute and how much they can contribute. The maximum contribution if you are under 50 years of age is $6000, $7000 if you are over 50. A cap exists on your adjusted gross income, disallowing contributions if you go past the cap, which is $137,000 for single filers, and $203,000 for joint filers. Important 2019 roth irs rules.

In order to figure out how much you may contribute, first calculate your Modified Adjusted Gross Income. To do this , take your overall income, minus tax deductions like student loan interest, HSA contributions, and other qualified deductions. If you have your tax return, you can find the number on line 37 for 1040, 21 for 1040A, and 4 for 1040-EZ. Then add back in these certain deductions, IRA contributions, student loan interest, half your self employment tax, passive income or loss, excluded foreign income, rental losses, tuition fees or expenses, interest from EE savings bonds used to pay higher education expenses, adoption expenses, and losses form a publicly traded partnership.

If you did not claim any of these deductions, your MAGI and AGI will be the same.  If you are married and filing separately, but lived with your spouse for any part of the year, you are only eligible for reduced contributions if your MAGI is less than $10,000. If your MAGI is in one of the phase out ranges above, you can find a worksheet for calculating your reduction at Because your already paid IRS taxes on your Roth IRA contributions, you can withdraw these contributions at any time. However, your investment earnings in the account are handled differently. You may face a 10% penalty on earnings unless it is a qualified withdrawal.

If you messed up your retirement withdrawals, as many had to take them out to get by the Covid pandemic, Federal Tax Resolution a 36 year old Tax Resolution Company can help you determine your Tax Relief options, including whether you qualify for the IRS Fresh Start Program. Our Tax Resolution involves Superior Tax Professionals, and our Tax Resolution Services are peer recommended. Nationwide for 36 years. Call Today for a Free Consultation. 1-888-689-7861