2027 Roth IRA Limits.

Possibly. The IRS adjusts the Roth IRA contribution limit in $500 increments based on cumulative inflation. The limit rose from $7,000 to $7,500 for 2026 (IRS Notice 2025-67). If the statutory inflation formula reaches the next increment, it could reach $8,000 in 2027; otherwise it holds at $7,500, since the statute only moves in $500 steps.

The Roth IRA MAGI phase-out ranges are adjusted annually for inflation in $1,000 increments. For 2026, the single filer phase-out began at $153,000. Our roughly 3% planning scenario starts the 2027 range at $158,000 for single filers and $249,000 for joint filers. The statutory phase-out widths stay fixed at $15,000 and $10,000 respectively, so the upper bounds are $173,000 and $259,000. These scenarios do not reproduce the IRS inflation formula; official 2027 thresholds are pending.

Yes. Eligible contributions to a traditional IRA or Roth IRA can qualify for the 2027 Saver’s Match, worth up to 50% of the contribution and capped at $1,000 per person. The match is claimed on the 2027 tax return filed in 2028 and is subject to MAGI and other eligibility rules.

Yes. There is no income limit on Roth conversions, only on direct contributions. High earners can make a non-deductible contribution to a traditional IRA, then convert it to a Roth IRA shortly after — a strategy commonly called the backdoor Roth. The IRA contribution still requires sufficient taxable compensation and shares the annual IRA cap. Conversion tax depends on all traditional, SEP, and SIMPLE IRA balances under the pro-rata rule; report nondeductible basis and conversions on Form 8606.

Under the SECURE 2.0 Act, the IRA catch-up contribution is indexed to inflation in $100 increments. For 2027, the catch-up amount is projected at $1,100, bringing the total contribution limit for filers age 50+ to $8,600.

The normal deadline for a 2027 IRA contribution is Tuesday, April 18, 2028. April 15 is Saturday, and Washington, D.C., observes Emancipation Day on Monday, April 17. A tax-return filing extension does not extend the IRA contribution deadline; any applicable disaster relief must be checked separately.

Use IRS Publication 590-A Worksheet 2-1. Start with AGI, subtract taxable Roth conversion and qualifying rollover income as directed, and add back specified items such as the traditional IRA deduction, student loan interest deduction, and foreign earned income or housing exclusions. Roth eligibility MAGI is not interchangeable with other programs' MAGI definitions.

If your MAGI falls within the phase-out range, your allowed contribution is reduced pro-rata based on how far your income extends into the phase-out window. Round the remaining allowed contribution up to the next $10, not the reduction. A positive reduced limit below $200 becomes $200, but the contribution is zero at or above the phase-out ceiling. The annual combined IRA limit, other IRA contributions, and taxable-compensation limit still apply.

Yes. Under the Spousal IRA rules, a non-working spouse can contribute up to $7,500 (or $8,600 if age 50+) to a separate Roth IRA, provided the working spouse has sufficient earned income and their joint MAGI is within the married phase-out limit (~$249,000–$259,000).

To withdraw investment earnings tax-free and penalty-free in retirement (age 59½+), at least five tax years must have passed since January 1 of the tax year for which your first Roth IRA contribution was made.

Yes. Direct annual contributions to a Roth IRA can always be withdrawn tax-free and penalty-free at any time, for any reason, because you already paid income tax on that money.

Yes. 401(k) contribution limits ($25,000 projected) and IRA contribution limits ($7,500 projected) are entirely separate. You can max out both accounts in the same tax year if eligible.

Excess contributions are subject to a 6% excise tax per year for every year they remain in the account. You can avoid this penalty by withdrawing the excess contribution plus associated net earnings before your tax filing due date.

Married couples filing separately who lived together at any time during the year face a restrictive phase-out window of $0 to $10,000. At MAGI of $10,000 or more, direct contributions are prohibited (though backdoor conversions remain permitted).

Yes, subject to conditions. The 529 must have been maintained for at least 15 years, and the transfer must go directly to the beneficiary's Roth IRA. Contributions and attributable earnings from the preceding five years are ineligible. The $35,000 lifetime cap, annual IRA cap reduced by other IRA contributions, and sufficient taxable compensation apply; the usual Roth MAGI ceiling does not.

No. Original owners of Roth IRAs are not required to take RMDs during their lifetime, allowing balances to compound tax-free indefinitely.

No. You must have taxable compensation (such as wages, salaries, tips, bonuses, or net self-employment earnings) at least equal to your total IRA contribution amount. Dividends, interest, rental income, and pension payments do not qualify.