Will an ESOP interfere with a Roth ira?

[Guest tonys]

My employer contributes to an ESOP (the employees don't). Will this prevent me from contributing to a Roth ira if the esop is over $2,000 a year? Or limit my contributions if the esop is under $2,000?

[Michael Devault]

The ability to make a contribution to a Roth IRA is limited only by your Modified Adjusted Gross Income.

Employer contributions to a retirement plan will not affect contribution eligibility to a Roth IRA. They only affect the deductability of contributions made to a traditional IRA.

Check out Publication 590 (available on the IRS' website) for more information.

Hope this helps.