Adding Money to an Existing Roth IRA Account

As long as you continue to meet the requirements to contribute to a Roth IRA, you may continue to add money to your existing Roth IRA. However, if you no longer meet the requirements, you do not have to close the account but you cannot add more money to it.

Taxable Income

You must have taxable income in order to contribute to a Roth IRA. The amount of money you add cannot exceed your taxable income for the year.

Income Restrictions

You cannot add money to a Roth IRA account if your modified adjusted gross income exceeds the IRS annual caps. Each year, these caps are adjusted to take into account inflation. For 2009, the caps are $120,000 for single filers, $176,000 for couples who file jointly and $10,000 for couples filing separately.

Contribution Limits

You cannot add more than the annual contribution limit for both traditional IRAs and Roth IRAs because the limit is cumulative. For example, if your contribution limit is $5,000 and you contribute $5,000 to a traditional IRA, you cannot contribute to a Roth IRA.

Reduced Contributions

Each year there is a phase-out range for contributions to your Roth IRA based on income. If you fall into the phase-out range your annual contribution decreases. For 2009, the phase-out ranges are $105,000 to $120,000 for single filers, $166,000 to $176,000 for joint filers, and $0 to $10,000 for couples who file separate returns.

Time Frame

You can add money to your existing Roth IRA to count in the current tax year between January 1 and April 15 (or the day you file your taxes, whichever is earlier) of the following year. For example, contributions made between Jan. 1, 2009, and April 15, 2010, can count towards 2009 contribution limits.

References

• IRS: Roth IRA Rules
• Bankrate: Roth IRA Rules