Single Taxpayers

• If you are a single tax filer, you can make your full Roth IRA contribution for 2011 if your adjusted gross income falls below the $107,000 threshold established by the IRS. That means you can contribute $5,000 to your Roth IRA, plus an extra $1,000 if you are 50 years of age or older. If your adjusted gross income falls between $107,000 and $122,000, you can still make a partial Roth IRA contribution. If your adjusted gross income is over $122,000, you are no longer eligible to make a Roth IRA contribution.
  
  

Married Couples

• Married taxpayers can make the full Roth IRA contribution for 2011 as long as their total adjusted gross incomes fall below $169,000. Married taxpayers with adjusted gross incomes of between $169,000 and $179,000 can make a partial contribution. But once those married couples exceed $179,000 in adjusted gross income, they are no longer eligible to contribute to a Roth IRA account.
  
  

Excess Contributions

• If you make a contribution to your Roth IRA and later find that you were over the income limits, the IRS considers that an excess contribution. If you make an excess contribution to your Roth IRA, the IRS assesses a tax penalty every year until you take the money back out. To correct the excess contribution and avoid taxes, you must withdraw not only the money you contributed, but the money those funds have earned since they were invested in the account.
  
  

Existing Roth IRA

• If you go over the income limits for a Roth IRA contribution, you can still retain any Roth IRA you do have. Going over the income limits simply means you cannot contribute any additional money to your Roth IRA for the year in question. If you drop below the income limit in the future, or if the IRS raises those limits, you can once again add money to your IRA and enjoy the long-term tax savings associated with the account.