How to Calculate MAGI for Roth IRA Contributions and Maximize Your Retirement Savings

How to Calculate MAGI for Roth IRA Contributions and Maximize Your Retirement Savings

Modified adjusted gross income (MAGI) is a crucial factor in determining eligibility for Roth IRA contributions. Calculating MAGI correctly ensures accurate contribution limits and tax treatment.

MAGI is calculated by adjusting gross income based on specific deductions and exclusions. For Roth IRA contributions, deductions like itemized deductions and the student loan interest deduction are added back to AGI. This adjusted amount is then used to determine eligibility and contribution limits.

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