The 2024 and 2025 contribution limits

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. For 2025, those limits increase to $7,000 and $8,000 respectively — the IRS has not raised them yet, so they stay the same as 2024.

These are the total amounts you can contribute across all your Roth IRAs combined in a single year. If you have two Roth IRAs at different banks, your contributions to both count toward the same annual limit. You cannot put $7,000 in each one.

The limit applies to money you contribute yourself. It does not include earnings that grow inside the account — those gains do not count against your limit and can grow tax-free indefinitely.

Key Takeaways

  • The annual contribution limit for 2024 and 2025 is $7,000 for people under 50 and $8,000 for people 50 and older.
  • Your income determines whether you can contribute the full amount, and income limits vary by filing status and change each year.
  • You can contribute to a Roth IRA only if you have earned income from work in that same year.
  • If you exceed the limit, the IRS charges a 6 percent penalty tax each year the excess money stays in the account.
  • You can withdraw contributions (but not earnings) at any time without penalty, so the account is more flexible than a traditional IRA.

Income limits that reduce or eliminate your contribution

Even if you are under the age limit, your income may prevent you from contributing the full amount. The IRS phases out your contribution ability once your income reaches a certain threshold. For 2024, if you file as single, the phase-out begins at $146,000 and ends at $161,000 of modified adjusted gross income (MAGI). If you are married filing jointly, it begins at $230,000 and ends at $240,000.

For 2025, those ranges shift slightly: single filers phase out between $148,000 and $163,000; married filing jointly between $233,000 and $243,000. If your income falls within the phase-out range, you calculate a reduced contribution limit — the IRS worksheet or a tax professional can walk you through this. If your income exceeds the upper limit, you cannot contribute to a Roth IRA that year through the direct route.

These income limits apply only to direct contributions you make yourself. If you are over the limit, you may still be able to convert money from a traditional IRA to a Roth IRA, though that conversion has its own tax consequences.

You must have earned income to contribute

You can only contribute to a Roth IRA if you have earned income in that same calendar year. Earned income means wages from a job, self-employment income, or other compensation you received for work. It does not include investment returns, Social Security, pensions, or unemployment benefits.

The amount you contribute cannot exceed your total earned income for the year. If you earned $4,000 in 2024, you can contribute at most $4,000 to a Roth IRA for 2024, even though the limit is $7,000. A spouse with no earned income can contribute to a spousal Roth IRA only if the working spouse has enough earned income to cover both contributions.

What happens if you contribute too much

If you put more than the annual limit into your Roth IRA, the IRS imposes a 6 percent excise tax on the excess amount each year it remains in the account. This penalty applies in addition to any income tax you owe on the earnings. For example, if you contributed $8,000 when the limit was $7,000, you would owe 6 percent tax on the $1,000 excess in year one, and another 6 percent in year two if you do not remove it.

The solution is to withdraw the excess contribution plus any earnings it generated before your tax return deadline (including extensions). If you catch the mistake early and remove the money in time, you can avoid the penalty. If you discover it after filing, you can still request a correction from the IRS, though the process is more involved.

Some people make excess contributions by accident — for instance, by not accounting for a contribution made at a different financial institution. Others do it intentionally and then correct it. Either way, the key is to act before the tax deadline.

Contribution deadlines and catch-up contributions

You have until the tax filing deadline for that year — normally April 15 of the following year — to make a contribution and have it count toward that year's limit. If you file an extension, you still have until April 15; the extension gives you more time to file your return, not more time to contribute. For example, a 2024 contribution must be made by April 15, 2025.

If you are 50 or older, you can make an additional catch-up contribution of $1,000 per year (in both 2024 and 2025). This is on top of the regular $7,000 limit, bringing your total to $8,000. You do not have to be retired or have any special status — you simply need to have reached age 50 by December 31 of that year.

How contributions differ from conversions

A direct contribution is money you put into a Roth IRA from your own pocket using earned income. A conversion is when you move money from a traditional IRA, SEP IRA, or SIMPLE IRA into a Roth IRA. Conversions are not subject to the annual contribution limit, but they are subject to income limits and create a tax bill in the year you convert.

If you are over the income limit for direct contributions, a conversion may still be available to you. However, if you have a traditional IRA with pre-tax money, converting triggers income tax on the amount converted. A tax professional can help you decide whether a conversion makes sense for your situation.

Frequently Asked Questions

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

No, you must have earned income in that year. Retirement income, Social Security, pensions, and investment returns do not count. If you are retired but still working part-time or as a consultant, you can contribute based on that earned income. A spouse who is retired can contribute to a spousal Roth IRA if the working spouse has enough earned income.

What if I contribute, then my income changes and I end up over the limit?

You can still withdraw the excess contribution before the tax deadline and avoid the penalty. The IRS allows you to correct over-contributions if you act in time. You will owe tax on any earnings the excess generated, but not the 6 percent penalty if you remove it by the deadline.

Do employer contributions count toward my limit?

No. If your employer offers a Roth 401(k) or Roth 403(b), those contributions are separate from your Roth IRA limit. You can max out both in the same year. However, your Roth IRA contribution limit is still based on your earned income, and employer contributions do not increase that limit.

Can I contribute to a Roth IRA for my child?

Yes, if your child has earned income. A teenager working a summer job can open a Roth IRA and contribute up to the amount they earned (or the annual limit, whichever is lower). You can gift them the money to contribute, but the contribution must be based on their actual earned income from work.

What if I miss the deadline to contribute?

You cannot go back and contribute to a prior year once the deadline passes. However, you can contribute to the current year's limit at any time during the year. If you want to contribute for 2024 and it is now 2025, you have until April 15, 2025 to make that 2024 contribution. After that date, any contribution counts toward 2025.