The yearly 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 limit itself does not change based on how much money you earn. However, your income determines whether you can contribute the full amount, contribute a reduced amount, or contribute nothing at all. This income threshold is called the phase-out range, and it varies depending on your tax filing status.
You cannot contribute more than you earned in taxable income during that year. If you earned $3,000 in 2024, you can contribute no more than $3,000 to your Roth IRA for that year, even if the annual limit is higher.
Key Takeaways
- The 2024 contribution limit is $7,000 for people under 50 and $8,000 for people 50 and older.
- Your income determines whether you can use the full limit; if your income is too high, your contribution limit shrinks or disappears entirely.
- The income thresholds that trigger the reduction are different for single filers, married filing jointly, and married filing separately.
- You cannot contribute more than your total taxable income for the year, regardless of the annual limit.
Income phase-out ranges for 2024
The IRS reduces your contribution limit if your modified adjusted gross income (MAGI) falls within a specific range. Once your income exceeds the top of that range, you cannot contribute at all.
| Filing Status | Phase-Out Range |
|---|---|
| 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 |
If your MAGI is below the lower number in your range, you can contribute the full $7,000 (or $8,000 if you are 50+). If your MAGI falls between the two numbers, your limit is reduced. If your MAGI is above the upper number, you cannot contribute to a Roth IRA that year.
MAGI is not the same as your gross income. It includes certain deductions added back in, such as student loan interest and self-employment tax. Your tax return or a tax professional can tell you your MAGI for the year.
How the reduction works if your income is in the phase-out range
If your MAGI falls between the lower and upper limits, the IRS uses a formula to calculate how much you can contribute. The reduction is not a simple percentage — it is based on how far into the range your income falls.
The range itself is $15,000 wide for single filers and $10,000 wide for married filing jointly. The IRS divides your contribution limit by that width and subtracts the result for each $1,000 (or fraction of $1,000) your income exceeds the lower limit. If the result is not a whole dollar amount, you round up to the next $50.
Example: You are single with a MAGI of $150,000 in 2024. The phase-out range for single filers is $146,000 to $161,000. Your income is $4,000 above the lower limit. Dividing $7,000 by $15,000 and multiplying by $4,000 gives roughly $1,867. Subtracting that from $7,000 leaves about $5,133, which rounds up to $5,150. That is your contribution limit for the year.
Many people find it easier to use the IRS Roth IRA contribution limit worksheet on Form 8606 or to ask a tax preparer to calculate the exact amount rather than doing this math by hand.
Spousal contributions and non-working spouses
If you are married and file jointly, your spouse can open and contribute to their own Roth IRA even if they did not earn income that year. The contribution limit is still $7,000 (or $8,000 if they are 50+), but the money must come from your joint income and your combined MAGI determines whether the contribution is allowed.
Your spouse's contribution is separate from yours. If you both contribute the full amount, you can put $14,000 combined into Roth IRAs in 2024 (or $16,000 if you are both 50+). However, your combined MAGI must fall below the phase-out range for married filing jointly to make the full contributions.
What happens if you contribute too much
If you contribute more than the limit for your income level, the excess is called an excess contribution. The IRS charges a 6% penalty tax on the excess amount each year it remains in the account.
You can remove the excess and any earnings it generated before your tax return is due (including extensions). If you do this on time, the 6% penalty does not apply. The earnings you withdraw are taxed as ordinary income for that year.
If you do not catch and correct the excess contribution in time, you will owe the 6% penalty for that year and every year the money stays in the account. It is worth reviewing your contribution each year, especially if your income changed or you are not sure whether you stayed within the limit.
Contribution limits for 2025 and beyond
The IRS adjusts contribution limits and income phase-out ranges each year based on inflation. For 2025, the contribution limit is expected to increase, but the exact amount is set by the IRS in October of the prior year.
You can find the current year's limits on the IRS website or by calling the IRS directly. Your bank or brokerage firm that holds your Roth IRA will also have this information available.
Frequently Asked Questions
Can I contribute to a Roth IRA if I have no income?
No, unless you are married and file jointly. In that case, your spouse can contribute based on your household income. If you are single with no income, you cannot contribute to a Roth IRA that year, even if you have money in savings.
What if I earn more than the phase-out limit partway through the year?
Your contribution limit is based on your MAGI for the entire year, not just the months you were below the limit. If you earn too much by year-end, you may have contributed too much. You can withdraw the excess and any earnings before your tax deadline to avoid the penalty.
Do employer retirement plans affect my Roth IRA contribution limit?
No. Having a 401(k), 403(b), or other workplace plan does not change how much you can contribute to a Roth IRA. However, it may affect your ability to deduct contributions to a traditional IRA if you also have one.
Can I contribute to multiple Roth IRAs?
Yes, but your total contributions across all Roth IRAs cannot exceed the annual limit. If you have two Roth IRAs and contribute $4,000 to one and $3,500 to the other, you have used your full $7,500 limit for the year (assuming you are under 50).