Salary increase and contributing to ROTH IRA

[blackjack]

Say you been contributing to a roth ira for few years making under 114k. If you get a salary raise of 150k+ does this mean you cant contribute your roth ira anymore?

[blackjack]

also if i go from 110k and now make 150k+ during 2014, does that mean i cant contribute after april 2015?

[maizefolk]

IIRC, your eligibility to contribute to a ROTH is determined on an annual basis. If your incomes comes in over $127,000 for the year, you can't make any contributions at all that year. Even if you make $1,000 a month for the first 11 months and $120,000 in December, you can't make any Roth IRA contribution that year.

But it's not all bad. Look into the "backdoor" Roth IRA contribution. It's more paperwork but you can ultimately get the exact same benefit as a direct Roth contribution (unless you already have a lot of money sitting in a conventional IRA).