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T06-0075 - Possible Elements of 2006 Tax Reconciliation Bill, Eliminate Income Limitation on Roth IRA Contributions, Distribution of Federal Tax Change by Cash Income Class, 2006

A reported component of the tax reconciliation bill being negotiated between the House and Senate is the elimination of income limitations on Roth IRA contributions, effective January 1, 2006. Under current law, the income limits are $4,000 for an individual and $8,000 for a couple in 2006, and $5,000 for an individual and $10,000 for a couple in 2010. This table shows the distribution of benefits by income class for 2006.

May 2, 2006