Estimate your Modified Adjusted Gross Income (MAGI) to determine Roth IRA contribution eligibility.
Your Estimated MAGI:
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Understanding Your Modified Adjusted Gross Income (MAGI) for Roth IRA Contributions
The Modified Adjusted Gross Income (MAGI) is a crucial figure used by the IRS to determine your eligibility for certain tax benefits, including contributions to a Roth IRA. While your Adjusted Gross Income (AGI) is a good starting point, MAGI involves further modifications specific to the tax benefit in question. For Roth IRA contributions, your MAGI is generally your AGI with certain deductions added back.
What is MAGI for Roth IRA Purposes?
The formula for calculating MAGI for Roth IRA eligibility involves starting with your Taxable Income (often found on Line 11 of Form 1040) and then adding back specific deductions. These deductions are those that would typically reduce your AGI but are not considered relevant for the Roth IRA contribution limitations.
How to Calculate Your MAGI for Roth IRA
The general calculation is as follows:
Start with your Taxable Income (Line 11, Form 1040).
Add back:
Deductions for one-half of self-employment tax (Schedule SE, Line 12). Note: This is not included in this simplified calculator but is part of the full IRS calculation.
Deduction for contributions to a traditional IRA (Line 20, Form 1040).
Excludable foreign earned income and housing exclusions (Form 2555, Lines 20 and 39).
Deductible part of your student loan interest (Line 21, Form 1040). Note: This calculator uses Line 21 in a general sense, assuming typical student loan interest deduction may be present.
Excludable interest from Series EE and Series I U.S. savings bonds issued after 1989 (Form 1040, Line 3c).
Deductions for contributions to a health savings account (HSA) (Form 1040, Line 12).
Deductions for self-employment SEP, SIMPLE, and qualified plans (Schedule 1, Line 13). Note: This is not included in this simplified calculator.
Deductions for health insurance premiums, self-employed (Schedule 1, Line 17). Note: This is not included in this simplified calculator.
Deductions for penalty on early withdrawal of savings (Form 1040, Line 16). Note: This is not included in this simplified calculator.
Alimony paid. Note: This is not included in this simplified calculator.
Tuition program contributions (Form 1040, Line 21). Note: This calculator includes this under Line 21 of Form 1040.
Simplified Formula Used in this Calculator:
MAGI = Taxable Income + IRA Deductions + Foreign Earned Income Exclusion + Foreign Housing Exclusion + U.S. Savings Bond Interest + Tuition Program Contributions + HSA Deduction
Why MAGI Matters for Roth IRAs
The IRS sets income limits for contributing directly to a Roth IRA. If your MAGI exceeds these limits, you may not be able to contribute the full amount or any amount directly to a Roth IRA for that tax year. These limits are adjusted annually for inflation and vary based on your tax filing status (Single, Married Filing Jointly, etc.).
Example of Roth IRA Income Limits (for illustrative purposes, check IRS for current year):
Single Filer: Phase-out range might be from $140,000 to $155,000. Above $155,000, no direct contribution.
Married Filing Jointly: Phase-out range might be from $218,000 to $228,000. Above $228,000, no direct contribution.
Understanding your MAGI is the first step to ensuring you are contributing to a Roth IRA within the IRS guidelines. If your MAGI is too high for direct contributions, consider exploring a "Backdoor Roth IRA" strategy.
Disclaimer: This calculator provides an estimation based on simplified inputs. Consult with a qualified tax professional or refer to IRS publications for definitive guidance and to ensure accuracy for your specific tax situation.
function calculateMAGI() {
var taxableIncome = parseFloat(document.getElementById("taxableIncome").value);
var iraDeductions = parseFloat(document.getElementById("iraDeductions").value);
var foreignEarnedIncomeExclusion = parseFloat(document.getElementById("foreignEarnedIncomeExclusion").value);
var foreignHousingExclusion = parseFloat(document.getElementById("foreignHousingExclusion").value);
var usSavingsBondInterest = parseFloat(document.getElementById("usSavingsBondInterest").value);
var tuitionProgramContributions = parseFloat(document.getElementById("tuitionProgramContributions").value);
var healthSavingsAccountDeduction = parseFloat(document.getElementById("healthSavingsAccountDeduction").value);
var magi = 0;
// Basic validation to ensure inputs are numbers
if (isNaN(taxableIncome)) taxableIncome = 0;
if (isNaN(iraDeductions)) iraDeductions = 0;
if (isNaN(foreignEarnedIncomeExclusion)) foreignEarnedIncomeExclusion = 0;
if (isNaN(foreignHousingExclusion)) foreignHousingExclusion = 0;
if (isNaN(usSavingsBondInterest)) usSavingsBondInterest = 0;
if (isNaN(tuitionProgramContributions)) tuitionProgramContributions = 0;
if (isNaN(healthSavingsAccountDeduction)) healthSavingsAccountDeduction = 0;
// MAGI Calculation simplified for this calculator
// Start with Taxable Income and add back specific deductions for Roth IRA MAGI
magi = taxableIncome + iraDeductions + foreignEarnedIncomeExclusion + foreignHousingExclusion + usSavingsBondInterest + tuitionProgramContributions + healthSavingsAccountDeduction;
// Display the result
var resultDisplay = document.getElementById("result-value");
if (magi >= 0) {
resultDisplay.textContent = magi.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
} else {
resultDisplay.textContent = "Invalid Input";
}
}