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Employer contributions under a SEP or SIMPLE IRA plan don’t affect this limit. This means that your contribution limit is the lesser of: • $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or • Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as ex- plained later under Contribution limit reduced. Simplified employee pensions (SEPs) and savings in- centive match plans for employees (SIMPLEs) are dis- cussed in Pub. 560. Repayment of reservist distributions. You can repay qualified reservist distributions even if the repayments would cause your total contributions to the Roth IRA to be more than the general limit on contributions. However, the total repayments can’t be more than the amount of your distribution. Note. If you make repayments of qualified reservist distributions to a Roth IRA, increase your basis in the Roth IRA by the amount of the repayment. For more informa- tion, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. Contribution limit reduced. If your modified AGI is above a certain amount, your contribution limit is gradually reduced. Use Table 2-1 to determine if this reduction ap- plies to you. Figuring the reduction. If the amount you can con- tribute must be reduced, use Worksheet 2-2 to figure your reduced contribution limit. Round your reduced contribution limit up to the nearest $10. If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. Example. You are a 45-year-old, single individual with taxable compensation of $121,000. You want to make the maximum allowable contribution to your Roth IRA for 2018. Your modified AGI for 2018 is $121,000. You haven’t contributed to any traditional IRA, so the maxi- mum contribution limit before the modified AGI reduction is $5,500. You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. Example—Illustra- ted. TIP Chapter 2 Roth IRAs Page 41