Is my pension considered part of my modified adjusted gross income when contributing to a Roth IRA?

Jan 25, 2019
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I am retired from a local government job and receive a pension of about $65,000 a year. I am working in retirement, making about $75,000 a year. Last year I made $141,000 between my pension and salary, and contributed over $6,000 into a 457 plan. Is my pension considered part of my "modified adjusted gross income" when it comes to contributing to a Roth IRA?

The information included in your question indicates that you are a single filer. 

The 2018 phase-out range for single filers is $120,000 to $135,000. Below that, you could make a full Roth IRA contribution for 2018; above that, no Roth IRA contribution for 2018.

Your adjusted gross income (AGI) for 2018 is $141,000. Your modified adjusted gross income (MAGI) for 2018 is also $141,000. None of the “modifiers” are applicable. 

The answer to your question is yes: your pension income is considered part of your MAGI. You are precluded from making a Roth IRA contribution for 2018.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Harold P. Eck, CPA, is an individual practitioner in Jersey Shore, Pa.

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