Multiply by your maximum contribution limit. Subtract the result of #4 from the maximum contribution limit. Please note that the divisor (in step #3) of $15,000 is set by theInternal Revenue Service (IRS), depending on your tax filing status. If your return is filed asmarried filing join...
Income limits apply to common tax breaks. MAGI, in particular, is used to determine eligibility for several tax-related benefits, including: Roth IRA contributions:Retirement contribution (income) limits to a Roth retirement account are based on your MAGI. (Related: Learn abouthow Roth IRAs are ...