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Table 9-3. Effect of Modified AGI on Roth IRA Contribution 14:38 - 19-Jan-2021
This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross income (modified AGI).

IF you have taxable compensation and AND your modified
your filing status is... AGI is... THEN...

Married filing jointly or less than $196,000 you can contribute up to $6,000 ($7,000 if you are 50 or
Qualifying widow(er) older in 2020).
at least $196,000 the amount you can contribute is reduced as explained
but less than $206,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$206,000 or more you can't contribute to a Roth IRA.
Married filing separately and you lived zero (-0-) you can contribute up to $6,000 ($7,000 if you are 50 or
with your spouse at any time during the year older in 2020).
more than zero (-0-) the amount you can contribute is reduced as explained
but less than $10,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$10,000 or more you can't contribute to a Roth IRA.
Single, less than $124,000 you can contribute up to $6,000 ($7,000 if you are 50 or
Head of household, or Married filing older in 2020).
separately and you didn't live with your at least $124,000 the amount you can contribute is reduced as explained
spouse at any time during the year
but less than $139,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$139,000 or more you can't contribute to a Roth IRA.
Figuring the reduction. If the amount you Withdrawal of excess contributions. For Conversion methods. You can convert
can contribute to your Roth IRA is reduced, see purposes of determining excess contributions, amounts from a traditional IRA to a Roth IRA in
Worksheet 2-2 under Can You Contribute to a any contribution that is withdrawn on or before any of the following ways.
Roth IRA? in chapter 2 of Pub. 590-A for how to the due date (including extensions) for filing • Rollover. You can receive a distribution
figure the reduction. your tax return for the year is treated as an from a traditional IRA and roll it over (con-
amount not contributed. This treatment applies tribute it) to a Roth IRA within 60 days after
When Can You Make only if any earnings on the contributions are the distribution.
Contributions? also withdrawn. The earnings are considered to • Trustee-to-trustee transfer. You can di-
have been earned and received in the year the
You can make contributions to a Roth IRA for a excess contribution was made. rect the trustee of the traditional IRA to
year at any time during the year or by the due Applying excess contributions. If contribu- transfer an amount from the traditional IRA
date of your return for that year (not including tions to your Roth IRA for a year were more to the trustee of the Roth IRA.
extensions). than the limit, you can apply the excess contri- • Same trustee transfer. If the trustee of
You can make contributions for 2020 bution in one year to a later year if the contribu- the traditional IRA also maintains the Roth
IRA, you can direct the trustee to transfer
TIP by the due date (not including exten- tions for that later year are less than the maxi- an amount from the traditional IRA to the
sions) for filing your 2020 tax return. mum allowed for that year. Roth IRA.
Same trustee. Conversions made with the
What if You Contribute Too Much? Can You Move Amounts same trustee can be made by redesignating the
A 6% excise tax applies to any excess contribu- Into a Roth IRA? traditional IRA as a Roth IRA, rather than open-
tion to a Roth IRA. You may be able to convert amounts from either ing a new account or issuing a new contract.
Excess contributions. These are the contri- a traditional, SEP, or SIMPLE IRA into a Roth Rollover from a qualified retirement plan
butions to your Roth IRAs for a year that equal IRA. You may be able to roll amounts over from into a Roth IRA. You can roll over into a Roth
the total of: a qualified retirement plan to a Roth IRA. You IRA all or part of an eligible rollover distribution
you receive from your (or your deceased spou-
may be able to recharacterize contributions
1. Amounts contributed for the tax year to made to one IRA as having been made directly se's):
your Roth IRAs (other than amounts prop- to a different IRA. You can roll amounts over • Employer's qualified pension, profit-shar-
erly and timely rolled over from a Roth IRA from a designated Roth account or from one ing, or stock bonus plan;
or properly converted from a traditional Roth IRA to another Roth IRA.
IRA or rolled over from a qualified retire- • Annuity plan;
ment plan, as described later) that are Conversions • Tax-sheltered annuity plan (section 403(b)
more than your contribution limit for the plan); or
year; plus You can convert a traditional IRA to a Roth IRA.
2. Any excess contributions for the preceding The conversion is treated as a rollover, regard- • Governmental deferred compensation plan
(section 457 plan).
year, reduced by the total of: less of the conversion method used. Most of the Any amount rolled over is subject to the same
rules for rollovers, described earlier under Roll-
a. Any distributions out of your Roth over From One IRA Into Another under Tradi- rules as those for converting a traditional IRA
IRAs for the year, plus tional IRAs, apply to these rollovers. However, into a Roth IRA. Also, the rollover contribution
b. Your contribution limit for the year mi- the 1-year waiting period doesn't apply. must meet the rollover requirements that apply
nus your contributions to all your IRAs to the specific type of retirement plan.
for the year.
Page 88 Chapter 9 Individual Retirement Arrangements (IRAs)