Why can’t I contribute to a Roth IRA if I make too much?
The answer almost always comes down to one thing — Modified Adjusted Gross Income (MAGI).
In this episode, we break down the difference between Adjusted Gross Income (AGI) and Modified Adjusted Gross Income (MAGI) — two terms that sound similar but have very different impacts on your financial life.
You’ll learn:
- How AGI is calculated directly from your tax return
- What income counts (W-2 wages, capital gains, rental income, RSUs, Social Security, business income, and more)
- Which deductions reduce your AGI (HSA contributions, SEP/SIMPLE IRA, self-employed health insurance, student loan interest, etc.)
- Why itemized deductions and the standard deduction do NOT affect AGI
- How MAGI is calculated by adding certain items back to AGI
- Why MAGI determines eligibility for Roth IRA contributions, premium tax credits, education credits, child tax credits, and income-based student loan repayment
We also explain why lenders care about AGI — and why taxpayers often misunderstand what actually lowers it.
If you’ve ever been told your income is “too high” for a Roth IRA contribution, this episode will make it clear why — and what that really means for your tax planning strategy.
This is core tax planning knowledge. And if you earn a strong income, it’s not optional.