Roth IRA AGI: How to Calculate & Understand Your Income Limits

If you need to work our your ROTH IRA AGI, then you may not be sure how to begin. The AGI, or adjusted gross income, is used to calculate restrictions on the amount of money that you can place into the IRA. Accurately calculating the AGI is essential. If you have a Roth IRA, your AGI cannot exceed 100,000 dollars once it has been modified.

Finding the ROTH IRA AGI

You can find your AGI very easily. If you have filed a 1040 in the past year, then you should look at the last number on page 1, or the first on page 2. This is your AGI. If you have submitted the form 1040EZ, then you should see the AGI on line 4. For most types of IRA, however, you will have to estimate your AGI from the current year.

Estimating the AGI

Start with the amount from the previous year and determine whether you have made any economic changes. This quick calculation will determine your AGI for the current year. In order to get the right amount, you will then have to modify the amount to include your current earnings.