What's a Roth IRA?
The Roth IRA is a newer option for retirement savings, where contributions are not deductible, but earnings are tax-free. Invest after-tax money or convert your traditional IRA to a Roth IRA.
The annual regular contribution limit is the lesser of $6,000 for 2022 and $6,500 for 2023 (plus catch-up contributions, if eligible) or 100 percent of eligible compensation (generally earned income). IRA owners age 50 or older by the end of the tax year may increase their IRA contributions to help "catch-up" on their retirement savings, for a maximum contribution of $7,000 for 2022 and $7,500 for 2023. The contribution limit applies to all Traditional and Roth IRA contributions made for the year, in aggregate.
Roth IRA contribution eligibility depends on the individual’s (or if married, the individual and the spouse’s) modified adjusted gross income (MAGI) and income tax filing status. The amount that an individual is eligible to contribute is reduced if his MAGI falls within or below certain phase-out ranges.
The 2023 and 2022 MAGI phase-out ranges are listed below:
| Filing Status | 2023 MAGI | 2022 MAGI |
|---|---|---|
| Single, head of household or married filing separately (if you didn't live with spouse during year) | $138,000-$153,000 | $129,000-$144,000 |
| Married, filing jointly or qualifying widow(er) | $218,000-$228,000 | $204,000-$214,000 |
| Married, filing separately (if you lived with spouse at any time during year) | $0-$10,000 | $0-$10,000 |
The following specific details for Roth IRA contributions are based on 2022 figures:
- Single individuals with MAGI of $138,000 or less may contribute the maximum annual contribution ($6,000, plus catch-up contributions, if eligible) to their Roth IRAs.
- Single individuals with MAGI of more than $138,000 and less than $153,000 may make partial contributions to their Roth IRAs.
- Single individuals with MAGI of $153,000 or more may not contribute to Roth IRAs.
- Married individuals who file joint income tax returns with joint MAGI of $218,000 or less may contribute the maximum annual contribution to their Roth IRAs.
- Married individuals who file joint returns with joint MAGI of more than $218,000 and less than $228,000 may make partial contributions to their Roth IRAs.
- Married individuals who file joint returns with MAGI of $228,000 or more may not contribute to Roth IRAs for that year.
- Married individuals who file separate returns with MAGI of less than $10,000 may make partial contributions to their Roth IRAs.
- Married individuals who file separate returns with MAGI of $10,000 or more may not contribute to Roth IRAs.
There is NO age limit for contributing to a Roth IRA as long as there is still earned income.
Automatic payroll deductions and automatic transfers are a great way to save for your future. To find out more about Roth IRAs, please contact a Meriwest Representative.
For complete information regarding IRA's, view the www.irs.gov website Earn an even higher dividend rate by investing in an IRA certificate!
Traditional IRA and Roth IRA accounts are insured separately up to $250,000 from other accounts that are maintained in Meriwest Credit Union. View NCUA's Your Insured Funds brochure for detailed share insurance information.
To open an IRA account or get more information, call (877) 637-4937 or visit one of our Meriwest Financial Centers.
You can discover more options by calling a Meriwest Wealth Advisor directly at 408-866-1002.
Please consult your tax advisor regarding your individual situation.
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Eligibility Requirements
You are eligible to join Meriwest Credit Union if any of the following applies
- You live, work, worship, or attend school in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties of Northern California, and Pima county of Arizona.
- You are an employee of a participating Meriwest Credit Union member company.
- You are a relative of or reside with a current member of Meriwest Credit Union.
- If you don’t meet any of the requirements above but live in California or Arizona, you can still join Meriwest with a complimentary membership in the Financial Fitness Association. Call 1-877-637-4937 to learn more.