Catch-up Contribution
Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the
March 3, 2009
My modified adjusted gross income (MAGI) falls within the phase-out range for Roth contribution eligibility? How do I determine………
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My modified adjusted gross income (MAGI) falls within the phase-out range for Roth contribution eligibility? How do I determine………
My modified adjusted gross income (MAGI) falls within the phase-out range for Roth contribution eligibility? How do I determine the amount I am eligible to contribute?
If you use tax-preparation software, it should calculate the amount that you are eligible to contribute. If you want to calculate the amount manually, use the following steps:
- Subtract the lower dollar amount in the range from your MAGI.
- Divide the result by the difference between the lower amount in the range and the higher amount in the range.
- Multiply the result by the maximum contribution amount in effect for you for the year.
- Subtract the result from the maximum contribution amount
The result is the amount you are allowed to contribute to a Roth IRA.
See Roth IRA Definition for limits and ranges
