It’s Your Money, Your Wealth’s 60-Second Question Countdown. In just one minute, Joe Anderson answers a viewer’s question about Roth IRA contribution limits.
Transcription:
0:22 “I’m 49 years old and I’d like to know how much I should be putting in my Roth IRA every year so I can retire comfortably around the age of 65”
0:42 “$5,500 is the maximum [you can deposit] once you reach 50. You’re 49 [years old] so that number is $5,500. There are Adjusted Gross Income (AGI) limitations to the Roth IRA. Take a look at the bottom of your 1040 form. If that’s more than $131,000 if you are single or $132,000 for 2016 or if it’s more than $194,000 if you’re married, you cannot contribute to a Roth IRA – you make too much money”
1:17 “If you saved the maximum at [age] 50-65 ($5,500) you’re going to have maybe $100,000 in retirement. That might not be enough to get you through, so you have to do some more saving”
