How much can I contribute to Roth IRA for 2020?

[Prague]

I am a bit confused how much I can contribute to my Roth IRA for 2020 as I am doing my taxes. We only have an earned income of $3K, but our adjusted income for 2020 is almost 270K due to a massive conversion from our traditional IRA to our Roth IRA. My questions are:
1. Is there a income limitation for contribution to Roth?
2. If there is, then we are not eligible to contribute. But if there is not, then we can contribute to the amount of our 3K earned income, right?

We have not been able to contribute to Roth due to income limitation for years and kind of forgetting the rules of it.

 

[SecondCor521]

Answers:

1. Yes. See

https://www.irs.gov/retirement-plan...-ira-contributions-that-you-can-make-for-2020

Note that your MAGI for Roth contribution purposes appears to exclude Roth conversions. See Worksheet 2-1 here:

https://www.irs.gov/publications/p590a#en_US_2019_publink1000230985

In particular line 2 of that worksheet.

2. If your MAGI for Roth contribution purposes is low enough, then you can contribute up to your taxable compensation and it can go in either spouse's Roth IRA. See https://www.irs.gov/publications/p590a#en_US_2019_publink1000230983.

 

[gauss]

+1 -- a good answer above.

-gauss

 

[Prague]

Answers:

1. Yes. See

https://www.irs.gov/retirement-plan...-ira-contributions-that-you-can-make-for-2020

Note that your MAGI for Roth contribution purposes appears to exclude Roth conversions. See Worksheet 2-1 here:

https://www.irs.gov/publications/p590a#en_US_2019_publink1000230985

In particular line 2 of that worksheet.

2. If your MAGI for Roth contribution purposes is low enough, then you can contribute up to your taxable compensation and it can go in either spouse's Roth IRA. See https://www.irs.gov/publications/p590a#en_US_2019_publink1000230983.

Thank you! Knowing Roth conversion amount is not part of the MAGI for Roth contribution purpose is the key! That really clarified everything for me! Thanks again!