Hi everyone you're listening to the Money Girl

podcast and I'm Laura Adams. Here's a question that I received on the Money Girl voicemail line.

Hi, I'm calling from Maryland. I recently had to go part-time in my job and my husband makes close to $200,000 a year.

My question, should I now start an individual retirement account? People were telling me to do a Roth IRA and I understand the

reasons why, but I also understand that we make too much money I believe to contribute to a Roth IRA. Thank you.

A Roth IRA can be a great way to say for retirement.

If you're not sure what a Roth or a traditional IRA is, be sure to listen

to podcast number 173 called What is the Difference Between a Traditional and Roth IRA? It's in the Money Girl section at quick and

dirty tips.com. The caller alluded to income restrictions on who can

contribute to a Roth IRA and she's right about that. The first step to getting

a Roth IRA is to make sure that you're eligible to contribute to one. When you're

modified adjusted gross income or magi for the When your

modified, adjusted, gross income or magi for the tax year is within a certain range,

the total amount you can contribute to a Roth IRA is reduced or phased out.

And if your income exceeds the allowable range,

you're not allowed to make a Roth IRA contribution.

However, if your income drops below the IRS's allowable limit in the future, you can start making Roth contributions

to the same account again.

Here are the Roth IRA income limits by tax filing status for 2011.

If you file taxes as single, head of household, or married filing separately

and you did not live with your spouse during the year,

then your phase out range is 107,000 to 122,000.

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