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. The threshold changes each year and depends on your filing status. If your income exceeds the limit, you cannot contribute that year, even if you have earned income.

The income limits are different for single filers, married filing jointly, and married filing separately. For 2024, a single filer can contribute the full amount if MAGI is under $146,000. That range shrinks to $230,000 for married couples filing jointly. If you earn above these numbers, you may still contribute a reduced amount, or you may not contribute at all — it depends on how far over the limit you are.

These limits change annually. The IRS publishes updated thresholds each January. You can find the current year's limits on IRS.gov or ask your tax preparer what applies to you.

Key Takeaways

  • You must have earned income from work to contribute to a Roth IRA — investment income, Social Security, or unemployment benefits do not count.
  • Your income cannot exceed the IRS limit for your filing status, or your contribution will be reduced or blocked entirely.
  • You can contribute only up to the annual limit set by the IRS, which is $7,000 for most people in 2024 and $8,000 if you are 50 or older.
  • You do not have to be employed by a company; self-employed people and freelancers can contribute as long as they report earned income on their tax return.

You need earned income to contribute

Earned income means money you receive from working — wages, salary, self-employment income, or taxable alimony. It does not include investment returns, rental income, Social Security, pensions, or unemployment benefits. If you have no earned income in a year, you cannot contribute to a Roth IRA that year, regardless of how much money you have in the bank.

Your contribution cannot exceed your earned income for that year. If you earned $4,000 in 2024, you can contribute at most $4,000 to a Roth IRA for 2024, even if the annual limit is higher. This rule protects the account's purpose: it is meant to hold retirement savings from work, not to shelter other types of money.

Self-employed people and freelancers count as having earned income. If you report net self-employment income on your tax return, you can contribute based on that amount. Spouses with no income can sometimes contribute through a spousal Roth IRA if the working spouse has enough earned income for both.

Age does not restrict who can contribute

There is no age limit for contributing to a Roth IRA. You can open and fund one at age 25 or at age 75. Unlike traditional IRAs, which require you to stop contributing at age 73, Roth IRAs allow contributions for as long as you have earned income.

The only age-related change is the annual contribution limit. If you are 50 or older, you can contribute an extra $1,000 per year — called a catch-up contribution. In 2024, that means you can put in $8,000 instead of $7,000. This rule applies regardless of your income level, as long as you meet the income limits described above.

Contribution limits apply to all your Roth accounts combined

If you have more than one Roth IRA, your total contribution across all of them cannot exceed the annual limit. The IRS counts them together. If you contribute $3,500 to one Roth IRA and $4,000 to another in the same year, you have exceeded the $7,000 limit and will owe a penalty on the excess.

The same rule applies if you also have a SEP IRA or SIMPLE IRA — these are separate accounts with their own limits, but some contribution types count toward both limits. If you are self-employed or have multiple retirement accounts, ask a tax preparer to confirm your total contribution room for the year.

You can move money between your own Roth IRAs without triggering this limit, as long as you complete the transfer within 60 days. Moving money is not a contribution; it is a rollover.

Married couples filing separately face stricter limits

If you are married and file separate tax returns, the income limit for Roth contributions is much lower — $10,000 in 2024. This means if you earn more than $10,000 and file separately, you cannot contribute to a Roth IRA at all that year. The IRS uses this rule to discourage married couples from filing separately.

If you are married and file jointly, you and your spouse each have your own income limit based on your combined MAGI. If one spouse earns $200,000 and the other earns $50,000, and your combined MAGI is $250,000, the higher-earning spouse may not be able to contribute, but the lower-earning spouse may still be able to, depending on the exact threshold.

Non-citizen residents can contribute if they have earned income

You do not have to be a U.S. citizen to open a Roth IRA. You must have a Social Security Number or Individual Taxpayer Identification Number (ITIN) and earned income reported on a U.S. tax return. Non-citizen residents, visa holders, and green card holders can all contribute as long as they meet the income and earned-income requirements.

The income limit applies to your U.S. income only. If you have income from outside the United States, it may or may not count toward the limit depending on your tax filing status and whether you report it to the IRS. Consult a tax preparer familiar with non-citizen taxation to confirm your contribution room.

Frequently Asked Questions

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

Only if you have earned income. Retirement income, pensions, and Social Security do not count. If you work part-time or are self-employed in retirement, you can contribute based on that earned income. Many people in their 60s and 70s do this.

What happens if I contribute more than the limit?

The excess amount is subject to a 6% penalty tax each year it remains in the account. You can remove the excess and the earnings on it before your tax deadline to avoid the penalty. If you do not, you will owe the penalty when you file your return.

Can my spouse contribute to a Roth IRA if they do not work?

Yes, through a spousal Roth IRA. Your spouse can contribute up to the annual limit as long as you file jointly and your combined earned income is at least equal to the amount you both want to contribute. You must open the account in your spouse's name.

Does my income from a side job count toward the Roth limit?

Yes. Any earned income counts — wages, self-employment income, freelance work, or gig work. Report it on your tax return, and you can use it to determine your contribution room.

What if my income is right at the limit?

The IRS phases out your contribution gradually. If your MAGI is within the phase-out range for your filing status, you can contribute a reduced amount. The exact reduction depends on how far into the range you fall. A tax preparer can calculate the exact amount you can contribute.