The yearly contribution limit depends on your age and income
For 2024, you can contribute up to $7,000 per year to a Roth IRA if you are under 50. If you are 50 or older, you can contribute an additional $1,000 as a catch-up contribution, for a total of $8,000. These limits reset on January 1 each year.
The IRS sets these limits and adjusts them periodically for inflation. The $7,000 and $8,000 figures apply to 2024 and 2025. Check the IRS website or your financial institution if you are contributing in a later year, as the amounts may have changed.
Your actual contribution limit may be lower than these maximums if your income exceeds certain thresholds. This is called the income phase-out range, and it determines whether you can contribute the full amount, a reduced amount, or nothing at all in a given year.
Key Takeaways
- The standard contribution limit is $7,000 per year for people under 50, and $8,000 per year for people 50 and older in 2024 and 2025.
- Your income determines whether you can contribute the full limit, a partial amount, or nothing — the phase-out ranges vary by filing status and change yearly.
- You can only contribute money you earned from work; you cannot contribute from investments, Social Security, or unemployment benefits.
- Contributions can be made until the tax filing deadline of the following year, usually April 15, so you have extra time to catch up.
How income phase-outs reduce or eliminate your contribution
If your modified adjusted gross income (MAGI) falls within a specific range, you can contribute a reduced amount. If your income exceeds the upper limit of that range, you cannot contribute to a Roth IRA that year at all.
The phase-out ranges for 2024 are:
| Filing Status | Phase-Out Range (2024) |
|---|---|
| Single or Head of Household | $146,000 to $161,000 |
| Married Filing Jointly | $230,000 to $240,000 |
| Married Filing Separately | $0 to $10,000 |
For example, if you are single with a MAGI of $150,000, you fall within the phase-out range of $146,000 to $161,000. You would calculate a reduced contribution amount rather than contributing the full $7,000. The IRS provides a worksheet to calculate the exact reduced amount, or your tax preparer can do this for you.
These ranges change each year. The IRS announces updated phase-out ranges in October or November for the following tax year, so check before you contribute if your income is close to the limits.
What counts as income you can contribute
You can only contribute money you earned from taxable compensation. This includes wages, salary, self-employment income, and taxable alimony. You cannot contribute more than you earned in a given year.
Income that does not count toward your contribution limit includes investment gains, interest, dividends, rental income, Social Security benefits, unemployment benefits, and pension distributions. If you did not work or had no taxable income in a year, you cannot contribute to a Roth IRA that year.
If you are married and file jointly, you can each contribute based on your own earned income, or one spouse can contribute based on the other's income if one spouse had little or no earnings. This is called a spousal Roth IRA contribution, and it allows a non-working spouse to build retirement savings.
Contribution deadlines and catch-up timing
You can contribute to a Roth IRA for a given tax year until the tax filing deadline, which is usually April 15 of the following year. This means you have until April 15, 2025, to contribute to your 2024 Roth IRA, for example.
If you turn 50 during the year, you can make the catch-up contribution for that year. You do not need to wait until the following year. Notify your financial institution that you are now may be able to access for the higher limit, and they will allow you to contribute the additional $1,000 before the year ends.
If you contribute more than the limit in a given year, the excess contribution is subject to a 6% excise tax each year it remains in the account. You can withdraw the excess and any earnings on it before the tax filing deadline to avoid the penalty, or file Form 5329 with your tax return to report and pay the tax.
Contributing to multiple Roth IRAs and other retirement accounts
If you have more than one Roth IRA, your total contributions across all of them cannot exceed the annual limit. For example, if you have two Roth IRAs and contribute $4,000 to one and $3,500 to the other, you have reached your $7,500 limit and cannot contribute more that year.
Contributions to a Roth IRA are separate from contributions to a traditional IRA. If you contribute to both types of IRA in the same year, your combined contributions cannot exceed the annual limit. However, contributions to a 401(k), 403(b), or other employer-sponsored plan do not count toward your Roth IRA limit — those accounts have their own separate limits.
If you have a Roth 401(k) through your employer, contributions to that account are also separate from your Roth IRA limit. You can contribute to both in the same year without affecting either limit.
What happens if you over-contribute
If you contribute more than the legal limit in a year, the IRS charges a 6% excise tax on the excess amount. This tax applies each year the excess remains in the account, so the penalty compounds if you do not fix it.
To correct an over-contribution, withdraw the excess amount and any earnings on it before your tax filing deadline. You will owe income tax on the earnings portion, but you avoid the 6% excise tax. If you miss the deadline, file Form 5329 with your tax return to report the excess and pay the 6% tax.
Some financial institutions track contributions automatically and will alert you if you are approaching the limit. Others do not, so it is your responsibility to keep track if you contribute to multiple accounts or have variable income.
Frequently Asked Questions
Can I contribute to a Roth IRA if I have no income this year?
No. You can only contribute if you have taxable earned income. If you did not work or had no income, you cannot contribute that year. However, if you are married and your spouse has income, you may be able to make a spousal contribution based on their earnings.
If I contribute early in the year and then my income rises above the phase-out limit, do I have to return the money?
Yes. If your final income for the year exceeds the phase-out limit, you must withdraw the excess contribution and any earnings on it by the tax filing deadline to avoid the 6% excise tax. Calculate your actual limit based on your final income and withdraw anything over that amount.
Can I contribute to a Roth IRA and a traditional IRA in the same year?
Yes, but your combined contributions to both types of IRA cannot exceed the annual limit. If you contribute $4,000 to a Roth IRA, you can contribute only $3,000 to a traditional IRA that year (assuming the $7,000 limit applies to you).
What if I inherit a Roth IRA from someone else?
Inherited Roth IRAs have different rules and do not count toward your annual contribution limit. You cannot add new contributions to an inherited account, but you can roll it over or take distributions according to your relationship to the original owner.
Do employer contributions to my Roth 401(k) count toward my Roth IRA limit?
No. Employer contributions to a Roth 401(k) are separate from your Roth IRA contribution limit. You can contribute the full $7,000 to a Roth IRA and also receive employer contributions to a Roth 401(k) in the same year without affecting either limit.