Modified Adjusted Gross Income

• Your modified adjusted gross income (MAGI) must fall below the annual limits to contribute. These limits vary based on your filing status and adjust each year. For example, in 2010, if you file as single or head of household, you cannot contribute if your MAGI exceeds $120,000.
  
  

Earned Income

• You must have earned income equal to, or surpassing, your annual Roth contribution. Earned income includes wages, salaries and tips, but not investment income or pensions.
  
  

Considerations

• If you are married, and your spouse has sufficient earned income, you may be eligible for a Roth IRA, even if you have no earned income.
  
  

Misconceptions

• The IRS does not impose any age restrictions on who can contribute to a Roth IRA.