Contribution Limits

• The contribution limits follow the basic guidelines set forth by the Internal Revenue Service for any contribution to an IRA. As of 2010, investors are allowed to contribute up to $5,000 of earned income annually into a Roth IRA. For investors older than 50, a $1,000 "catch-up" contribution is allowed. Married couples are allowed to contribute to an IRA for each spouse as long as the joint income is more than the amount contributed, meaning if both spouses contribute $5,000 each, there must be at least $10,000 of joint income for the family.
  
  

Single Qualifications

• For a single person to qualify to contribute to a Roth IRA, he must fall within specified income guidelines. As of 2010, single filers must file as head of household and make no more than $105,000 to make a full contribution to the Roth IRA account. There is a phase-out of contributions for single filers who make between $105,000 and $120,000.
  
  

Married Qualifications

• Married couples must also meet income qualifications in order to contribute to a Roth IRA. The couple must file joint returns and make less than $167,000 to qualify for a full contribution. The phase-out for married couples is between $167,000 and $177,000 in annual adjusted gross income. For couples who file separately, adjusted gross income must be less than $10,000, making filing joint returns much more attractive for contribution purposes.
  
  

Conversion Qualifications

• Converting a traditional IRA into a Roth IRA means paying the taxes on the deferred IRA value, restructuring the IRA into a Roth and obtaining the benefits of tax-free growth from the conversion date on. Prior to 2010, only those making less than $100,000 in single or joint income were allowed to convert a traditional IRA into a Roth. This rule no longer applies, making a Roth conversion available to anyone in any income bracket.
  
  

Total Roth Value

• There is no limit to how much you can save in a Roth IRA. If your investments grow over time into the millions, you are still entitled to receive the tax-free benefits of the Roth IRA.