A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Chadmere Capital Inurance and Financial Services, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Chademere Capital Insurance and Financial Services
(803) 242-1050



By Andy Ives, CFP®, AIF®
IRA Analyst

When it comes to contributing directly to a Roth IRA, an individual must have modified adjusted gross income below a certain level. This income level cutoff is not a “cliff,” meaning if you go one dollar over the level, you do not immediately become ineligible for a Roth IRA. There is a phaseout range where the amount of the direct Roth IRA contribution is gradually decreased. For 2021, the Roth phaseout limits for contributions are $198,000 – $208,000 for those married/filing joint, and $125,000 – $140,000 for single filers. (In 2020, these numbers were $196,000 – $206,000 and $124,000 – $139,000, respectively.)

What if, after all the annual numbers are tallied, your income falls within one of these phaseout ranges? How do calculate how much you are allowed to contribute to a Roth IRA? The 2020 version of IRS Publication 590-A provides a table to help calculate that number. Grab a pen and paper, number from 1 to 11, and simply fill in the answers to the following:

Line 1. Enter your modified AGI for Roth IRA purposes.

Line 2. Enter:

  • $196,000 if filing a joint return or qualifying widow(er),
  • $0 if married filing a separate return and you lived with your spouse at any time in 2020, or
  • $124,000 for all others (i.e., single or head of household).

Line 3. Subtract line 2 from line 1.

Line 4. Enter:

  • $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or
  • $15,000 for all others (i.e., single or head of household).

Line 5. Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000.

Line 6. Enter the lesser of:

  • $6,000 ($7,000 if you are age 50 or older), or
  • Your taxable compensation

Line 7. Multiply line 5 by line 6.

Line 8. Subtract line 7 from line 6. Round the result up to the nearest $10. If the result is less than $200, enter $200.

Line 9. Enter any contributions for the year to all other traditional and Roth IRAs.

Line 10. Subtract line 9 from line 6.

Line 11. Enter the lesser of line 8 or line 10. This is your reduced Roth IRA contribution limit.

As with all tax issues and questions, please seek out a qualified tax professional for additional guidance.


Ready To Take



For more information about any of our products and services, schedule a meeting today.

Or give us a call at (803) 242-1050

Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. Nothing on this website constitutes investment, legal or tax advice, nor that any performance data or any recommendation that any particular security, portfolio of securities, transaction, investment or planning strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations, execution of required documentation, and receipt of required disclosures. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #175083.

 ADV Part 2A & Form CRS              Privacy Policy