You can open a Roth IRA if you have earned income and meet the income limits set by the IRS

A Roth IRA is not restricted to a particular age or employment type. The main requirement is that you must have earned income — money you received from working, whether as a W-2 employee, self-employed person, or freelancer. You cannot open one using only investment returns, Social Security, or pension income.

The second requirement is an income limit. The IRS sets a maximum income threshold above which you cannot contribute directly to a Roth IRA. This threshold changes each year and depends on your filing status. For 2024, the limit phases out between $146,000 and $161,000 for single filers, and between $230,000 and $240,000 for married couples filing jointly. If your income exceeds these ranges, you have other options — a backdoor Roth conversion or a spousal Roth IRA — but you cannot contribute directly.

There is no age limit to open a Roth IRA. You can open one at 18 or at 75. You do not need to be employed by a company; self-employed people, gig workers, and freelancers can open one as long as they report earned income on their tax return.

Key Takeaways

  • You must have earned income from work to open a Roth IRA; investment income, Social Security, and pensions do not count.
  • Your income cannot exceed the IRS limit for your filing status in the year you contribute, though limits change annually.
  • There is no age requirement — minors can open a Roth IRA if they have earned income, and there is no upper age limit.
  • If your income is too high to contribute directly, a backdoor Roth conversion is a legal alternative that works regardless of income.
  • Self-employed people and gig workers can open a Roth IRA as long as they report earned income on their tax return.

What counts as earned income for Roth IRA purposes

Earned income means money you received for performing work. This includes W-2 wages from an employer, net self-employment income, freelance or contract work reported on a 1099 form, and income from a business you own. Rental income, dividend income, interest income, and capital gains do not count as earned income for this purpose.

If you are married and one spouse has no earned income, the working spouse can open a Roth IRA in their own name and contribute based on their income. The non-working spouse can also open a separate Roth IRA — called a spousal Roth IRA — and the working spouse can contribute to it on their behalf, as long as the couple files jointly and the working spouse's income is high enough to cover both contributions.

If you are self-employed, your earned income is your net profit after business expenses. If you have a loss in a given year, you have no earned income that year and cannot contribute to a Roth IRA.

Income limits and how they affect your ability to contribute

The IRS sets income limits based on your Modified Adjusted Gross Income (MAGI) and your filing status. These limits change each year. If your MAGI falls below the lower limit for your status, you can contribute the full annual amount. If it falls within the phase-out range, you can contribute a reduced amount. If it exceeds the upper limit, you cannot contribute directly to a Roth IRA that year.

The phase-out ranges are narrow — typically $15,000 to $25,000 depending on filing status. This means if you are close to the limit, even a small raise or bonus can reduce or eliminate your contribution room. You can check your MAGI by looking at your prior year tax return or by calculating it yourself using IRS worksheets.

Income limits apply only to direct contributions. They do not prevent you from doing a backdoor Roth conversion, which is a legal way to fund a Roth IRA regardless of how much you earn. A backdoor Roth involves contributing to a traditional IRA and then converting it to a Roth IRA. This strategy works at any income level, though it has tax implications if you have other traditional IRA balances.

Minors and Roth IRAs

A minor can open and contribute to a Roth IRA as long as they have earned income. This includes teenagers with part-time jobs, young people doing freelance work, or children with income from a family business. The contribution limit is the same as for adults — you can contribute up to your earned income for the year, or the annual limit ($7,000 in 2024), whichever is smaller.

A minor cannot open a Roth IRA on their own; a parent or guardian must open a custodial Roth IRA on their behalf. The parent controls the account until the child reaches the age of majority (usually 18 or 21, depending on state law). The earnings in the account grow tax-free, and the child can withdraw contributions (not earnings) at any time without penalty.

A custodial Roth IRA is one of the few ways a young person can begin saving for retirement early and benefit from decades of tax-free growth. Many brokerages offer custodial Roth IRAs with low or no minimum balances.

Self-employed people and business owners

If you are self-employed or own a business, you can open a Roth IRA as long as your business generates net income. Your earned income is your net profit after deducting business expenses. You report this on Schedule C (for sole proprietors) or Schedule K-1 (for partnerships and S-corporations).

Self-employed people have an additional option: a Solo 401(k) or SEP IRA, which allow much higher contribution limits than a Roth IRA. A Solo 401(k) lets you contribute up to $69,000 in 2024 (or $76,500 if you are 50 or older), while a SEP IRA allows up to 25% of your net self-employment income. These accounts are traditional (not Roth), but some Solo 401(k) plans offer a Roth option.

You can have both a Roth IRA and a Solo 401(k) or SEP IRA at the same time. Your Roth IRA contribution does not reduce how much you can contribute to a Solo 401(k), though your total contributions across all retirement accounts are subject to annual limits.

Married couples and joint filing

Each spouse can open their own Roth IRA based on their own earned income. If one spouse earns $80,000 and the other earns $20,000, each can contribute based on what they earned. There is no requirement that both spouses have income.

If one spouse has no earned income, the working spouse can contribute to a spousal Roth IRA on behalf of the non-working spouse. The couple must file taxes jointly, and the working spouse's income must be high enough to cover both their own contribution and the spousal contribution. For example, if both spouses want to contribute $7,000 in 2024, the working spouse must have at least $14,000 in earned income.

Each spouse has their own income limit. If one spouse's income exceeds the phase-out range, they cannot contribute directly, but the other spouse can still contribute based on their own income. A backdoor Roth conversion is available to either spouse regardless of the other's income.

Non-citizens and Roth IRAs

Non-citizens can open a Roth IRA if they have earned income and a Social Security number or Individual Taxpayer Identification Number (ITIN). You must file a U.S. tax return reporting your earned income, even if you are not a permanent resident.

Some visa holders — including H-1B, L-1, and O-1 visa holders — can open a Roth IRA. Others, such as F-1 student visa holders, may not be treated as residents for tax purposes and should check with a tax professional before opening an account. The key is whether you are classified as a resident alien for tax purposes, which depends on the visa type and how long you have been in the country.

Frequently Asked Questions

Can I open a Roth IRA if I am unemployed?

No, you must have earned income from work. Unemployment benefits, disability payments, and investment income do not count. If you have a spouse with earned income, you may be able to open a spousal Roth IRA.

What if my income is too high to contribute directly?

You can do a backdoor Roth conversion: contribute to a traditional IRA and convert it to a Roth IRA. This works at any income level. Be aware that if you have other traditional IRA balances, the conversion may trigger taxes. Consult a tax professional before proceeding.

Can I open a Roth IRA for my child?

Yes, if your child has earned income. You open a custodial Roth IRA in their name, and you manage it until they reach the age of majority. Your child can contribute up to their earned income or the annual limit, whichever is smaller.

Do I need to be a U.S. citizen to open a Roth IRA?

No, but you must have a Social Security number or ITIN and file a U.S. tax return. Your visa status matters — some visa holders are treated as resident aliens for tax purposes and can open a Roth IRA, while others cannot. Check with a tax professional if you are unsure.

Can I have both a Roth IRA and a 401(k)?

Yes. Your Roth IRA contribution does not affect your 401(k) contribution limit. However, your income limit for Roth IRA contributions may be affected if you also have access to a workplace retirement plan. Check the IRS worksheet for your filing status.