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February 11, 2014

Roth Funding Options- Contributions and Conversions


There are several options for adding amounts to your Roth IRA. The following are two of these options.

1.You can make a Roth IRA contribution of up to $5,500 ($6,500 if you reach age 50 by December 31). To be eligible to make these contributions, you must have taxable compensation for the year, and your modified adjusted gross income (MAGI) cannot exceed certain amounts. Please click here for the amounts

2.You can convert amounts from your Traditional, SEP or SIMPLE IRA ; or rollover eligible amounts from your account under an employer plan, such as a qualified plan governmental 457(b) or 403(b) plan. For this option, you do not need to have income.Prior to January 1, 2010, you were not eligible for the conversion/rollover option, if your MAGI was more than $100,000, and/or your tax filing status was married-filing-separately. However as of January 1, 2010, these restrictions are no longer in effect, allowing everyone who desires to do so, to fund a Roth IRA through a conversion/rollover.

For more on funding IRAs, see the articles Back to Basics- Funding Your IRAand Traditional or Roth IRA Contribution- Making The Choice

Download the Roth IRA Funding Options Quick Reference Guide for only $4.75 at

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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