The annual limit depends on your age and income

For 2024, you can put up to $7,000 into a Roth IRA if you are under 50 years old. If you are 50 or older, the limit is $8,000. These amounts change most years — the IRS raises them when inflation crosses a certain threshold, usually by $500 at a time.

The catch is that your income determines whether you can contribute the full amount, a reduced amount, or nothing at all. The IRS calls this the "phase-out range." If your modified adjusted gross income (MAGI) falls within that range, you can only contribute part of the limit. If your income is above the range, you cannot contribute to a Roth IRA directly that year.

The income limits change every year and depend on your filing status. For 2024, single filers begin to phase out at $146,000 MAGI and cannot contribute at all above $161,000. Married couples filing jointly phase out starting at $230,000 and cannot contribute above $240,000. Married filing separately have much lower limits — the phase-out starts at $0 and ends at $10,000.

Key Takeaways

  • The contribution limit for 2024 is $7,000 if you are under 50, or $8,000 if you are 50 or older, but only if your income is below the phase-out range.
  • Your income determines how much you can actually contribute — the IRS reduces your allowed contribution if your MAGI falls within the phase-out range for your filing status.
  • Income limits and contribution amounts change most years, so you need to check the current year's limits before you contribute.
  • You can contribute to a Roth IRA only if you have earned income that year — you cannot contribute based on investment returns or other passive income.

How the income phase-out actually works

If your income falls within the phase-out range, you do not lose the entire contribution limit. Instead, the IRS reduces it proportionally. The formula is: subtract the lower end of the phase-out range from your MAGI, divide that number by the width of the phase-out range, multiply by the full contribution limit, and round up to the nearest $10. The result is how much you lose.

For example, a single filer in 2024 with $150,000 MAGI would calculate it this way: $150,000 minus $146,000 equals $4,000. The phase-out range is $15,000 wide ($161,000 minus $146,000). So $4,000 divided by $15,000 equals 0.267, or about 27 percent. Twenty-seven percent of $7,000 is $1,890, which rounds up to $1,900. That person could contribute $7,000 minus $1,900, or $5,100.

If the calculation leaves you with less than $200, you can contribute $200 anyway. This rule prevents people from being locked out entirely by a small amount of income.

Earned income is the only income that counts

You can only contribute to a Roth IRA if you have earned income that year — wages from a job, self-employment income, or taxable alimony. Investment returns, rental income, Social Security, pensions, and interest do not count. Your contribution cannot exceed the amount of earned income you received.

If you earned $4,000 that year and your income limit allows you to contribute $7,000, you can only put in $4,000. If you are married filing jointly and your spouse earned $0, your spouse cannot contribute to a Roth IRA that year, even if you earned $100,000 — unless you use a spousal Roth IRA, which has its own rules.

What happens if you contribute too much

If you put more than the allowed amount into a Roth IRA in a given year, the excess is called an excess contribution. The IRS charges a 6 percent penalty tax on the excess amount each year it stays in the account. You also owe income tax on any earnings the excess generated.

The way to fix an excess contribution is to withdraw it before your tax return deadline — usually April 15 of the following year, plus extensions. If you withdraw the excess and any earnings it made, you avoid the penalty. If you do not withdraw it, the 6 percent penalty applies every year until you do, and it compounds.

Some people make excess contributions by accident because they contributed to both a traditional IRA and a Roth IRA in the same year, or because their income dropped after they contributed. The IRS allows you to recharacterize the contribution — move it to a different type of IRA — if you do so before your tax return deadline.

Contribution limits for married couples and dependents

Each spouse has their own contribution limit based on their own income. If you are married filing jointly, your spouse can contribute $7,000 (or $8,000 if 50+) as long as your spouse's MAGI is below the phase-out range. Your income does not affect your spouse's limit — only your spouse's income does.

A dependent child can contribute to a Roth IRA only if they earned income that year. A 16-year-old who worked part-time and earned $3,000 could contribute up to $3,000 to a Roth IRA. A child with no earned income cannot contribute, even if their parents want to fund it for them.

Catch-up contributions for people 50 and older

The $1,000 additional contribution allowed at age 50 is called a catch-up contribution. It exists because people who start saving later in life need a way to accelerate their savings. You become may be able to access for the catch-up contribution in the year you turn 50, and you can make it every year after that.

The catch-up contribution is subject to the same income phase-out rules as the regular contribution. If your income is in the phase-out range, both the regular limit and the catch-up amount are reduced proportionally. You cannot make a catch-up contribution if your income is above the phase-out range, even though you could make a regular contribution in other years.

How to track your contributions across multiple accounts

If you have Roth IRAs at more than one financial institution, the contribution limit applies to all of them combined, not to each account separately. If you contribute $4,000 to a Roth IRA at Bank A and $3,500 to a Roth IRA at Bank B in the same year, you have contributed $7,500 total — $500 more than the limit. You would need to withdraw the $500 excess plus any earnings before the deadline.

The same rule applies if you have a traditional IRA and a Roth IRA. Your total contribution to all IRAs in a year cannot exceed the annual limit. If you put $5,000 in a traditional IRA and $3,000 in a Roth IRA, you have hit the $8,000 limit (if you are 50+) or exceeded the $7,000 limit (if you are under 50).

You are responsible for tracking this yourself. The financial institutions do not coordinate with each other. If you exceed the limit across multiple accounts, it is your job to catch it and withdraw the excess before your tax deadline.

Frequently Asked Questions

Can I contribute to a Roth IRA if I do not work?

No, you must have earned income to contribute. If you are retired, unemployed, or living on investment income, you cannot contribute to a Roth IRA directly. A spouse with earned income can contribute to a spousal Roth IRA on behalf of a non-working spouse, but the contribution still counts against the working spouse's income limit.

What if my income goes over the limit after I already contributed?

You have until your tax return deadline to withdraw the excess contribution and any earnings it made. If you do, you avoid the penalty. If you do not withdraw it, you owe a 6 percent penalty tax on the excess amount each year it remains in the account.

Do I have to contribute the full limit every year?

No. You can contribute any amount from $0 up to your limit. You do not have to contribute every year, and you do not have to contribute the same amount each year. The only requirement is that you do not exceed the limit for that year.

Can I contribute to a Roth IRA if I have a 401(k) at work?

Yes, but your income limit for the Roth IRA is based on your MAGI, which includes your 401(k) contributions. Having a 401(k) does not change the Roth IRA income limits, but your total income (including what goes into the 401(k)) determines whether you can contribute to the Roth.

What counts as earned income for Roth IRA purposes?

Wages from a job, self-employment income, and taxable alimony all count. Bonuses, commissions, and tips count too. Investment income, rental income, Social Security, pensions, and unemployment benefits do not count as earned income for this purpose.