2010 Roth IRA contribution limits

Generally, the Roth IRA contribution limits for 2010 are the lesser of earned income or $5,000. If you are age 50 or older, you may qualify for an additional catch-up contribution which is $1,000.

However, if your modified adjusted gross income (MAGI) is above certain ranges, you may not contribute the full amount. That means your Roth IRA maximum contribution amounts are phased out.

If you are in the phase-out range, you can calculate your reduced contribution limit with following steps.

Step 1. Subtract following amount from your MAGI:

• For married filing jointly $167,000
• For single/head of household $105,000
• For married filing separately $0

Step 2. Divide the result in 'Step 1' by:

• For married filing jointly $10,000
• For single/head of household $15,000
• For married filing separately $10,000

Step 3. Multiply the maximum contribution limit by the result in 'Step 2'.

Step 4. Subtract 'Step 3' from the maximum contribution limit.

* If the amount doesn't equal an even $10 increment, round up to the next higher increment of $10. And if the amount is less than $200, increase the limit to $200.

If you make contributions both Roth IRA and traditional IRA, your Roth IRA maximum contribution limit is the lesser of:

• $5,000 ($6,000 if you are age 50 or older) minus traditional IRAs contributions, or
• Earned income minus traditional IRAs contributions.

If you had a 401k plan with an employer that went into bankruptcy, you can contribute an additional $3,000 to your Roth IRA if you meet certain other criteria.