- 1). Look up the phaseout range for your filing status as well as the maximum contribution for your age group in IRS Publication 590. For example, in 2010 the maximum contribution for a person under 50 is $5,000 and the phaseout range for singles is a MAGI between $105,000 and $120,000.
- 2). Subtract the lower limit of your phaseout range from your MAGI. For this example, if your MAGI equals $106,500, you would subtract $105,000 from $106,500 to get $1,500.
- 3). Calculate the size of the phaseout range by subtracting the minimum from the maximum. Continuing the example, you would subtract $105,000 from $120,000 to get $15,000.
- 4). Divide the amount you are over the lower limit of the phaseout range by the size of the phaseout range. In this example, you would divide $1,500 by $15,000 to get 0.1.
- 5). Subtract the step 4 result from 1. In this example, you would subtract 0.1 from 1 to get 0.9.
- 6). Multiply the step 5 result by the maximum Roth IRA contribution for your age to find your maximum Roth IRA contribution. In this example, you would multiply $5,000 by 0.9 to find that your maximum Roth IRA contribution for the year would be $4,500.
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