Roth IRA Cheat Sheet for 2018

Annual Contribution Limit:

The lesser of your taxable compensation or $5,500 ($6,500 if age 50 or older)

Contribution Age Limit


Contribution Eligibility

Up to the maximum is permitted if filing:

•  Single and MAGI is $120,000 or less
•  Married filing jointly and MAGI is $189,000 or less

No contribution permitted if filing

•  Single and MAGI exceeds $135,000
•  Married filing jointly and MAGI exceeds $199,000

*If married filing separately a reduced contribution limit applies but there is no contribution permitted if MAGI exceeds $10,000


Deduction Limits:

Roth IRA contributions are not deductible


Taxes on Distributions:

Qualified distributions are tax-free and penalty free



Required minimum distribution rules only apply to Roth beneficiaries


More Updates


The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

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Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

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Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

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