Example of calculating MAGI
As an example, let’s say that you’re single and want to determine if you can contribute to a Roth IRA in 2023. According to the IRS guidelines, your MAGI must be less than $138,000 to make a full contribution or less than $153,000 to make a partial contribution.
For 2023, you expect your adjusted gross income to be $135,000, but you paid $2,000 in interest on private student loans and had $500 in excluded savings bond interest. This makes your MAGI $137,500, so you will still qualify for a full Roth IRA contribution in 2023.