Income limits determine whether you can contribute

You can contribute to a Roth IRA only if your Modified Adjusted Gross Income (MAGI) falls below a threshold set by the IRS each year. The threshold depends on your filing status — single filers have a lower limit than married filers filing jointly. If your income exceeds the limit, you cannot contribute that year, even if you have earned income.

The income limits change annually. For 2024, single filers can contribute the full amount if their MAGI is under $146,000; the ability to contribute phases out between $146,000 and $161,000. Married couples filing jointly can contribute fully if their MAGI is under $230,000; the phase-out range is $230,000 to $240,000. Married filing separately has a much lower limit of $0 to $10,000. Check the IRS website or your tax software each year, because these numbers shift.

You must have earned income to contribute

A Roth IRA requires earned income — money you made from working. This includes wages, salary, self-employment income, and taxable alimony. It does not include investment returns, rental income, Social Security, pensions, or interest.

The amount you can contribute cannot exceed the earned income you received that year. If you earned $3,000 in 2024, you can contribute at most $3,000 to a Roth IRA, even if the annual contribution limit is higher. A spouse with no earned income can still contribute through a spousal Roth IRA, as long as the working spouse has enough earned income for both contributions combined.

Key Takeaways

  • Your income must fall below the IRS limit for your filing status in order to contribute; these limits change each year and are higher for married couples filing jointly.
  • You must have earned income from work — investment returns and retirement benefits do not count — and cannot contribute more than you earned that year.
  • A spouse with no earned income can contribute to a spousal Roth IRA if the working spouse has sufficient income for both.
  • Age is not a barrier; children with earned income can open and contribute to a Roth IRA, and there is no age limit for contributions.
  • You do not need to be a U.S. citizen, but you must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).

Age does not restrict who can contribute

There is no minimum age to open or contribute to a Roth IRA. A child who earns money — from a job, modeling, acting, or self-employment — can open a Roth IRA and contribute. A parent or guardian typically manages the account until the child reaches the age of majority in their state.

There is also no maximum age. You can contribute to a Roth IRA at 70, 80, or any age, as long as you have earned income and your income is below the IRS limit. Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime, so you can keep contributing and letting the money grow indefinitely.

Citizenship and tax identification requirements

You do not need to be a U.S. citizen to contribute to a Roth IRA. You do need a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). The financial institution holding the account will ask for this number when you open it.

If you are a nonresident alien with U.S. earned income, you can contribute to a Roth IRA as long as your income is below the limit. Your filing status for tax purposes may affect your income threshold, so consult a tax professional if your residency status is complex.

Contribution limits based on age

The IRS sets an annual contribution limit that applies to all your IRAs combined — both Roth and traditional. For 2024, the limit is $7,000 per year for people 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.

This limit is the same whether you are single, married, or filing separately. However, you cannot contribute more than your earned income for the year. If you are married and file jointly, each spouse has their own limit based on their own earned income, though a spousal contribution can use the working spouse's income.

Who cannot contribute

You cannot contribute if your income exceeds the IRS limit for your filing status, even if you have earned income. You also cannot contribute if you have no earned income that year — this includes retirees living on pensions or investment returns, people receiving only Social Security, and dependents with no job.

If you exceed the income limit, you may be able to use a backdoor Roth strategy, which involves contributing to a traditional IRA and then converting it to a Roth. This is a tax maneuver that requires careful execution; consult a tax professional before attempting it, because mistakes can result in unexpected tax bills.

Frequently Asked Questions

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

No, you must have earned income. Unemployment benefits, disability payments, and investment returns do not count. However, if you are married and your spouse has earned income, you may be able to contribute through a spousal Roth IRA.

What if my income is right at the limit?

If your MAGI is exactly at the phase-out threshold, you can contribute the full amount. The phase-out applies only if your income is above the threshold. For example, in 2024, a single filer with MAGI of $146,000 can still contribute the full $7,000.

Can a teenager with a summer job open a Roth IRA?

Yes. A teenager with earned income can open a Roth IRA. A parent or guardian must typically co-sign or manage the account until the teen reaches the age of majority. This is one of the best ways to start building retirement savings early.

Do I have to contribute the maximum amount?

No. You can contribute any amount up to the limit, as long as it does not exceed your earned income for the year. Many people contribute smaller amounts when their budget allows.

What happens if I contribute more than I should?

An excess contribution is subject to a 6% penalty tax each year it remains in the account. You can remove the excess and any earnings on it before your tax return deadline to avoid the penalty. Report the removal on your tax return.