ROTH IRA CONTRIBUTIONS AND QCDs: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD
Follow Us on Twitter: @theslottreport
I am 72 years old and have a Roth IRA. I have some extra cash in a bank account. Can I put that into my Roth IRA and how much can I contribute for 2021?
You could potentially contribute up to $7,000 to a Roth IRA this year, but there are a few strings attached. First, you must have 2021 earned income (pay from work or self-employment) of at least as much as the amount you contribute. (If you don’t have enough earned income but you’re married, your spouse could make a Roth IRA contribution for you if the spouse has enough earned income to cover both your Roth IRA contribution and the spouse’s contribution)
Second, you can’t make any Roth IRA contribution if your modified adjusted gross income (MAGI) exceeds a certain amount. For 2021, the limit for single individuals is $140,000 and for married individuals filing jointly is $208,000. You could make a partial contribution if your MAGI doesn’t exceed $125,000 (if single) or $198,000 (if married filing jointly). If your MAGI exceeds those limits, you could make a nondeductible traditional IRA (assuming you have enough earned income) and convert it to a Roth IRA using the “Backdoor Roth IRA” strategy.
Can you do a Qualified Charitable Distribution (QCD) to a donor advised fund?
Unfortunately, no. QCDs can only be made directly to a charity and not to donor advised funds or private grant making foundations.
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.