How to qualify for ROTH IRA?

I assume that you don't have a 401(k) or other such salary deferral program at your job. Roth eligibility hinges on Modified Adjusted Gross Income (MAGI), not gross earnings. For example, your wife's 401(k) contribution reduces her taxable wages, which is the starting point for AGI. Step one is to complete your 1040 to line 22, AGI. Then go to IRS Publication 590 and compute your Roth MAGI. Then you'll know exactly what your options are.

-- Phil Marti Clarksburg, MD

Also, if you dont qualify you might want to set up an IRA, make non-tax deductible contributions and convert to a Roth in 2010 when income doesnt matter.

But keep in mind that when you convert in 2010, that all IRA money is aggregated for purposes of calculating tax. e.g. if you have $10K pre-tax and $10K post tax in the IRA, 50% of the converted amount is taxable. JOE

Of course you have to pay tax on the tax-deductible converted amount - but after paying the tax it grows tax free, you withdraw tax free and you can have early withdrawal of principle without penalty. For people under