You can contribute to a Roth IRA if you have earned income and meet the income limits set by the IRS each year.

The basic rule is simple: you must have earned income — money from a job, self-employment, or freelance work — to contribute anything to a Roth IRA that year. You cannot contribute based on investment returns, rental income, or money from a spouse's earnings, even if you are married filing jointly.

The second requirement is an income ceiling. The IRS sets a maximum Modified Adjusted Gross Income (MAGI) above which you cannot contribute the full amount, and above which you cannot contribute at all. These limits change each year and differ based on your filing status. For 2024, the phase-out range for single filers starts at $146,000 and ends at $161,000. For married filing jointly, it starts at $230,000 and ends at $240,000. If your income exceeds the upper limit for your filing status, you cannot contribute that year.

There is no age limit on contributions. You can contribute at 25 or at 75, as long as you have earned income and stay under the income ceiling.

Key Takeaways

  • You must have earned income from work to contribute to a Roth IRA; investment income and spousal income do not count.
  • The IRS sets an income limit each year based on your filing status, and contributions are reduced or blocked entirely if you exceed it.
  • The contribution limit for 2024 is $7,000 per year if you are under 50, or $8,000 if you are 50 or older.
  • You can contribute to a Roth IRA at any age as long as you have earned income, even after you retire from your main job.

How the Income Limits Work

The income ceiling is a phase-out range, not a hard cutoff. If your MAGI falls within the range for your filing status, you can contribute a reduced amount. If your MAGI exceeds the upper limit, you cannot contribute at all that year.

MAGI for Roth IRA purposes is usually your adjusted gross income from your tax return, but some items — like foreign earned income or student loan interest — are added back in. If you are unsure whether a particular income source counts, check your tax return or speak with a tax preparer, because the IRS rules are specific and the consequences of over-contributing are steep.

The income limits are indexed to inflation and typically rise by $1,000 to $2,000 each year. If you are close to the limit, plan ahead: you may be able to contribute in one year but not the next if your income rises.

Contribution Limits and Catch-Up Contributions

For 2024, you can contribute up to $7,000 per year if you are under 50 years old. If you are 50 or older, you can contribute an additional $1,000 as a catch-up contribution, for a total of $8,000.

The contribution limit applies to the total you put into all your IRAs combined — traditional and Roth together. If you contribute $4,000 to a traditional IRA in a year, you can only contribute $3,000 to a Roth IRA that same year (assuming you are under 50).

These limits are set by Congress and change periodically. The IRS announces the new limit each October for the following year. If you are planning to contribute, check the current year's limit before you send money.

Earned Income: What Counts and What Does Not

Earned income means money you received for work: wages from a job, net profit from self-employment, or income from freelance or consulting work. It must be reported on your tax return.

These do not count as earned income: dividends, interest, capital gains, rental income, Social Security, pension payments, unemployment benefits, or money from a spouse's earnings. If you are married and only one spouse works, only the working spouse can contribute based on that income — the non-working spouse cannot contribute unless they also have their own earned income.

If you are self-employed, your earned income is your net profit after business expenses, not your gross revenue. If you have a loss in a year, you have no earned income that year and cannot contribute to a Roth IRA.

When You Can Contribute During the Year

You can contribute to a Roth IRA for a given tax year anytime from January 1 of that year through the tax filing deadline the following year — usually April 15. If you contribute after April 15, the IRS counts it toward the following year's limit.

For example, if you contribute $5,000 to your Roth IRA on March 1, 2024, it counts toward your 2024 limit. If you contribute $5,000 on May 1, 2024, it counts toward your 2025 limit (unless you specify otherwise when you make the contribution).

There is no requirement to contribute every year. If you have a low-income year or no earned income, you simply do not contribute that year. You do not lose the right to contribute in future years.

What Happens If You Over-Contribute

If you contribute more than the annual limit or contribute when your income exceeds the ceiling, the IRS charges a 6% excise tax on the excess amount each year it remains in the account. You must file Form 5329 with your tax return to report the over-contribution and pay the tax.

You can withdraw the excess contribution and any earnings on it before the tax filing deadline to avoid the penalty, but you will owe income tax on the earnings portion. If you do not catch it in time, the 6% tax applies year after year until the excess is removed.

The rules are strict because the IRS wants to prevent high-income earners from using Roth IRAs to shelter unlimited income. If you are unsure whether you can contribute in a given year, it is worth checking before you send the money.

Contributing as a Spouse or Non-Working Partner

If you are married and only one spouse has earned income, the working spouse can contribute to their own Roth IRA based on their income. The non-working spouse cannot contribute to their own Roth IRA unless they also have earned income.

However, some couples file joint tax returns and use a strategy called a spousal IRA contribution. This allows the non-working spouse to have their own IRA funded by the working spouse's income, as long as the couple files jointly and the working spouse has enough earned income to cover both contributions. The non-working spouse still needs their own IRA account; the working spouse simply contributes to it on their behalf.

The income limits still apply based on the couple's combined MAGI. If the couple's income exceeds the phase-out range for married filing jointly, neither spouse can contribute that year.

Frequently Asked Questions

Can I contribute to a Roth IRA if I am retired?

Yes, if you have earned income from work. Retirement income like Social Security or pension payments does not count. But if you work part-time, do freelance work, or have self-employment income, you can contribute based on that earned income, regardless of your age.

What if my income is right at the limit?

If your MAGI is within the phase-out range for your filing status, you can contribute a reduced amount. The IRS provides a worksheet to calculate the exact reduction. If your income exceeds the upper limit of the range, you cannot contribute at all that year.

Can I contribute to a Roth IRA and a 401(k) in the same year?

Yes. The contribution limits are separate. Your 401(k) contributions do not reduce your Roth IRA limit. However, your income from your job counts toward the Roth IRA income ceiling, so a high-earning 401(k) participant might exceed the Roth income limit.

What if I have both a traditional IRA and a Roth IRA?

Your annual contribution limit applies to the total across all IRAs you own. If you contribute $4,000 to a traditional IRA, you can only contribute $3,000 to a Roth IRA that year (assuming you are under 50 and the limit is $7,000).

Can I contribute if I have no income but my spouse does?

Only if you file a joint tax return and use the spousal IRA strategy. Your spouse's earned income can fund your Roth IRA contribution, but you must have your own separate IRA account, and the couple's combined income must be under the phase-out ceiling.