One of the greatest savings accounts that allows for tax-free growth and withdrawals is a Roth IRA. But, there are rules (of course!). First and foremost, you need to have “earned income” to even consider making a contribution. The answer to this question should be posed to your accountant, but if you are only receiving a pension, IRA or income considered “passive”, you will not be eligible for a Roth IRA contribution. Even if you meet the earned income criteria, not everyone is eligible to make a Roth contribution. Eligibility is phased out based on your MAGI (modified adjusted gross income). Married, filing jointly: Phase-out starts at $204,000 MAGI. Single or Head of Household: Phase-out starts at $129,000 MAGI