J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

8.20 Annual Contributions to a Roth IRA

You may make a nondeductible Roth IRA contribution for 2012 if you have taxable compensation for personal services and your modified adjusted gross income (MAGI) does not exceed the upper end of the phaseout range. The contribution is not reported on your tax return.

For 2012, the phaseout range does not begin until MAGI reaches $110,000 if you are unmarried (single or head of household), or $173,000 if you are married filing jointly or a qualifying widow(er). If your 2012 MAGI is under that phaseout threshold, you may contribute up to the 2012 contribution ceiling, which is $5,000 if you are under age 50 or $6,000 if you are age 50 or older by the end of the year, assuming you have taxable compensation of at least that much (the contribution cannot exceed the compensation).

If your 2012 MAGI exceeds the applicable $110,000/$173,000 phaseout threshold, the phaseout rule applies and your contribution limit is either partially or fully phased out. The $5,000/$6,000 contribution limit is phased out for unmarried taxpayers with MAGI of over $110,000 and under $125,000 and for married joint filers with MAGI of over $173,000 and under $183,000. If MAGI equals or exceeds the $125,000 or $183,000 limit, you cannot contribute to a Roth IRA for 2012; the contribution limit is completely phased out.

A stricter phaseout rule applies to a married person filing separately who lives with his or her spouse at any time during the year. In that case, the contribution ...