What do Obama and Roskam both have in common? They are AMERICAN. They represent the pillars of our great nation and our ideals. This site is dedicated to promoting American ideals that make our country the greatest country on the planet.
One of the most American things there is is financial freedom. We have been given all the tools by our government to retire in great comfort if we use them properly. One of the best tools you should be using is a Roth IRA. In the rest of this post I will introduce you to one of the most confusing things about Roth IRAs to get you on your way, the Roth IRA Contribution Limits.
The trouble that most people have when determining how much they can contribute to their Roth IRA is determining their income limits.
Roth IRA Income Limits
Your income limits are based on the taxable income that you received in the fiscal year. The key word here is taxable. Do not make the mistake of using your gross income to determine which income bracket you fall into or you may end up thinking you are not able to contribute to your Roth IRA when in actuality you can.
In order to determine your Roth IRA income limits be sure to take tax form 1040 or 1040a and fill it out in its’ entirety. Once you have filled out the appropriate form, look at the bottom line to find your adjusted gross income, sometimes referred to as your AGI. Use this number to determine your Roth IRA income limits for 2012.