How much you can put into a Roth IRA each year

The amount you can contribute to a Roth IRA depends on your age and your income. For 2024, the contribution limit is $7,000 per year if you are under 50, and $8,000 if you are 50 or older. For 2025, these limits increase to $7,500 and $8,500 respectively. These are the maximum amounts the IRS allows you to deposit across all your IRA accounts combined in a single tax year.

The catch is that your income must fall below a certain threshold to contribute the full amount. If your income is too high, your contribution limit phases out — meaning you can contribute less, or nothing at all. The income thresholds vary depending on whether you file taxes as single, married filing jointly, or married filing separately, and they change each year.

You can contribute to a Roth IRA only if you have earned income — money you made from working, not from investments or Social Security. If you have no earned income in a given year, you cannot contribute to a Roth IRA that year, even if you have money in the bank.

Key Takeaways

  • The 2024 contribution limit is $7,000 per year ($8,000 if age 50+); for 2025 it rises to $7,500 ($8,500 if age 50+).
  • Your income must be below a phase-out range to contribute the full amount; if your income exceeds the upper limit, you cannot contribute at all.
  • You can only contribute money you earned from work, not from investments, pensions, or other sources.
  • The IRS counts contributions to all your IRAs together, so if you have both a Roth and a traditional IRA, your combined contributions cannot exceed the annual limit.

Income limits that reduce or eliminate your contribution

The IRS sets income ranges where your Roth contribution limit shrinks. If your income falls within this range, you can contribute a reduced amount. If your income exceeds the upper limit, you cannot contribute at all that year.

For 2024, if you file as single, the phase-out range is $146,000 to $161,000. If your income is $146,000 or less, you can contribute the full $7,000. If your income is between $146,000 and $161,000, your contribution limit is reduced. If your income is $161,000 or more, you cannot contribute. For 2025, these thresholds move to $161,000 to $176,000.

If you are married and file jointly, the phase-out range is much higher. For 2024, it is $230,000 to $240,000. For 2025, it moves to $240,000 to $250,000. If you are married and file separately, the phase-out range is nearly zero — it starts at $0 and ends at $10,000 — which makes Roth contributions very difficult if you file this way.

The income figure used is your modified adjusted gross income (MAGI), which is usually your adjusted gross income with certain deductions added back. Your tax software or tax preparer can tell you your MAGI for the year.

How the phase-out works if your income is in the range

If your income falls between the lower and upper limits, the IRS uses a formula to calculate how much you can contribute. The calculation is not simple, and most people use tax software or a calculator to figure it out.

The basic idea: the IRS divides the difference between your income and the lower limit by the width of the phase-out range, then subtracts that percentage from your full contribution limit. If the result is less than $200, you can contribute $200. If the result is zero or negative, you cannot contribute.

For example, suppose you file as single in 2024, your MAGI is $150,000, and the full limit is $7,000. Your income is $4,000 above the lower limit of $146,000. The phase-out range is $15,000 wide. The IRS calculates: ($4,000 ÷ $15,000) × $7,000 = $1,867 reduction. Your contribution limit is $7,000 − $1,867 = $5,133. You can contribute up to $5,133 that year.

The IRS publishes worksheets and tables to help you calculate this, and most tax software does it automatically. If you are in the phase-out range, ask your tax preparer or use the IRS worksheet before you deposit money.

Contribution limits if you have multiple IRAs

The annual limit applies to all your IRAs combined, not to each account separately. If you have a Roth IRA and a traditional IRA, or if you have two Roth IRAs at different banks, your total contributions to all of them in one year cannot exceed the limit.

For example, if the 2024 limit is $7,000 and you contribute $4,000 to a Roth IRA at Bank A and $3,500 to a traditional IRA, you have used your full $7,000 limit. You cannot contribute more to either account that year. If you try to contribute more, the excess becomes an excess contribution, which triggers taxes and penalties.

If you have multiple IRAs and you are not sure how much you have already contributed, contact each financial institution where you hold an IRA. They can tell you the total you have deposited in the current tax year. Add those amounts together and subtract from the annual limit to find out how much room you have left.

What happens if you contribute more than the limit

If you deposit more than the annual limit into your Roth IRA, the excess amount is subject to a 6% excise tax each year it remains in the account. You must file IRS Form 5329 to report the excess contribution and pay the tax.

The best way to fix an excess contribution is to withdraw the excess amount plus any earnings on it before the tax filing deadline (usually April 15 of the following year). If you do this, you owe tax on the earnings but not the 6% penalty. If you do not withdraw the excess, the 6% tax applies every year until the excess is gone.

Some people make excess contributions by mistake — for example, if they did not know their income had risen above the phase-out limit, or if they forgot they had already contributed to another IRA. The IRS allows you to correct this, but you must act quickly. If you think you have made an excess contribution, contact your financial institution or a tax preparer right away.

Catch-up contributions if you are 50 or older

The IRS allows people age 50 and older to contribute an extra $1,000 per year beyond the standard limit. This is called a catch-up contribution. It is meant to help people who started saving for retirement later in life.

For 2024, if you are 50 or older, your limit is $8,000 instead of $7,000. For 2025, it is $8,500 instead of $7,500. You must have turned 50 by December 31 of the tax year to use the catch-up limit that year.

The catch-up contribution is subject to the same income phase-out rules as the regular contribution. If your income is too high, both your regular limit and your catch-up limit are reduced or eliminated. You cannot contribute the catch-up amount if you cannot contribute the regular amount.

When you can contribute and when the deadline is

You can contribute to a Roth IRA for a given tax year anytime from January 1 of that year through the tax filing deadline of the following year — usually April 15. For example, you can contribute to your 2024 Roth IRA anytime from January 1, 2024, through April 15, 2025.

Some financial institutions allow you to make contributions online or by mail. Others require you to visit in person or call. Check with your bank or brokerage to learn how they accept contributions and whether there are any fees.

If you miss the deadline, you cannot go back and contribute for that year. You can only contribute for the current tax year and future years. If you have extra money and want to catch up, you can contribute more in future years, but only up to the annual limit for each year.

Frequently Asked Questions

Can I contribute to a Roth IRA if I am self-employed or a freelancer?

Yes, as long as you have net self-employment income. Self-employed people report their income on Schedule C and pay self-employment tax. Your Roth contribution limit is based on your net self-employment income after the self-employment tax deduction. If you have no net income in a year, you cannot contribute that year.

What if my income changes after I have already contributed?

If your income rises above the phase-out limit after you have contributed, you have made an excess contribution. You must withdraw the excess plus earnings before the tax filing deadline to avoid the 6% penalty. Contact your financial institution to request a withdrawal and ask for the earnings amount.

Can my spouse contribute to a Roth IRA if they do not work?

Yes, if you are married and file jointly and you have enough earned income to cover both contributions. This is called a spousal Roth IRA. Your combined earned income must be at least equal to the total contributions you both want to make. Your spouse's contribution limit is still $7,000 (or $8,000 if age 50+) for 2024, and your income phase-out limits apply to both of you together.

Do I have to contribute the full amount every year?

No. You can contribute any amount from $0 up to your limit. You are not required to contribute every year. If you have a low-income year, you can skip contributing and use your full limit in a higher-income year instead.

What if I have a 401(k) at work — does that affect my Roth IRA limit?

No. The Roth IRA contribution limit is separate from 401(k) limits. You can contribute to both in the same year. However, if you have a 401(k) or other workplace retirement plan, your income phase-out range for the Roth IRA may be different. Check the current IRS limits for your filing status.