How can you qualify for a Roth IRA?

Navigating your financial future can be a daunting task, and most of us would instead not think about it if we didn’t have to. However, thinking about your retirement does not have to be hard or stressful.

A Roth IRA can take away some of the guesswork, but how can you contribute? Quest is here to help you understand what you need to do to qualify as well as learn about the best wealth-building investment options available. Moreover, with our genuinely self-directed IRA accounts, you are the one in control. Here are some things to help you get started:

Qualifying for a Roth IRA:

The IRS has enacted guidelines and restrictions on who can contribute to an account. Your income must fit specific criteria set by the IRS to open a Roth IRA. Also, it all depends on how you decide to file your taxes. It’s important to note that any income you choose to invest should come from work you performed yourself. It cannot come from any other investments.

The current Roth IRA income limits for 2019:

Single or head of household: You need to earn less than $122,000 (for the year of 2019) to contribute to your Roth IRA

Married and filing jointly or a qualified widow(er): You need to earn less than $193,000 (your combined income) to contribute to your Roth IRA.

Married but filing separately: Your income needs to be less than $10,000 to contribute to a Roth IRA, and in this case, there may be better retirement investment options for you. Also if you’re married but filing separately, you can use the limits as if you were presenting as “single.” However, only if you have not lived with your spouse in the past year.

If you have earned income in 2019 that falls under what’s outlined here, you can contribute to a Roth IRA account. However, how much you can contribute also depends on your age.

If you’re 49 or younger: You can contribute $6,000 (for 2019).

If you’re married: Each person can contribute $6,000, even if only one person has a paying job. There are also a few other key differences, so be sure to ask a Quest IRA specialist about spousal Roth IRAs.

If you’re 50 or older: You have the same contribution limit of $6,000, but in addition to this, you are also allowed to contribute an additional $1,000 to “catch up” for a total of $7,000. Please note: this is also true for spousal accounts if your spouse is also 50 or older.

If you cannot contribute due to the limitations listed above, please give us a call to discuss your options!

Here at Quest Trust Company, we are committed to helping you navigate your financial future. Please reach out to a Quest IRA specialist today for more information about Roth IRAs and how you can open an account. Also, be sure to check out our other blog posts for more information on Roth IRAs.

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