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

The basic rule is simple: you must have earned income — money from a job, self-employment, or freelance work — in the year you contribute. You cannot open a Roth IRA on investment returns, Social Security, pensions, or unemployment benefits alone. The IRS also sets income limits that change each year. If your income is above the limit for your filing status, you cannot contribute the full amount, and above a higher limit, you cannot contribute at all.

Age does not disqualify you. You can open a Roth IRA at 18 or at 75. You do not need a certain credit score, employment history, or minimum balance. 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). If you meet the earned income and income limit requirements, you can open one.

Key Takeaways

  • You must have earned income in the year you contribute — investment income, Social Security, or pensions do not count.
  • Your income cannot exceed the IRS limit for your filing status; the limit changes yearly and varies by whether you file single, married filing jointly, or married filing separately.
  • A spouse with no earned income can open a spousal Roth IRA if the other spouse has earned income and you file jointly.
  • Minors can open a Roth IRA if they have earned income from a job or self-employment, and a parent or guardian must co-sign.
  • You can open a Roth IRA at any age and with any financial institution that offers them — banks, brokerages, and credit unions all provide them.

Income limits that apply to your filing status

The IRS sets a phase-out range for Roth IRA contributions. If your income falls within that range, you can contribute a reduced amount. If your income exceeds the upper limit, you cannot contribute at all that year. The limits depend on your filing status and change annually.

For 2024, the phase-out ranges are: single filers, $146,000 to $161,000; married filing jointly, $230,000 to $240,000; married filing separately, $0 to $10,000. For 2025, the ranges shift to: single filers, $150,000 to $165,000; married filing jointly, $236,000 to $246,000; married filing separately, $0 to $10,000. Your income for this purpose is your modified adjusted gross income (MAGI), which is usually your adjusted gross income before subtracting the Roth contribution itself.

If you exceed the limit, you have other options: a backdoor Roth conversion (converting a traditional IRA to a Roth), a mega backdoor Roth through an employer plan, or simply waiting until your income drops below the limit in a future year.

Earned income requirements and what counts

Earned income means money you received for work. This includes W-2 wages from an employer, net self-employment income, and taxable alimony or spousal support. It does not include capital gains, dividends, interest, rental income, Social Security, pensions, annuities, or distributions from retirement accounts.

If you are self-employed, your earned income is your net profit after business expenses and the self-employment tax deduction. If you earned $5,000 in a year, you can contribute up to $5,000 to a Roth IRA that year (assuming you meet the income limits). You cannot contribute more than you earned, and you cannot contribute more than the annual contribution limit set by the IRS — $7,000 for 2024 and 2025 if you are under 50, or $8,000 if you are 50 or older.

Spousal Roth IRAs for non-working spouses

If you are married filing jointly and one spouse has no earned income, the working spouse can open a spousal Roth IRA for the non-working spouse. The working spouse's earned income counts for both contributions. You can each contribute up to the annual limit, as long as the working spouse's total earned income is at least equal to the combined contributions and you both stay within the income phase-out range.

For example, if one spouse earned $20,000 and the other earned nothing, the earning spouse can contribute $7,000 to their own Roth and $7,000 to a spousal Roth for the non-earning spouse (assuming 2024 limits and that you meet the income requirements). The spousal Roth is a separate account in the non-earning spouse's name, and they control it independently after it is opened.

Minors and custodial Roth IRAs

A minor can open a Roth IRA if they have earned income from a job or self-employment. A parent or legal guardian must open and manage the account as a custodial Roth IRA until the child reaches the age of majority (usually 18 or 21, depending on state law). The minor's earned income is what determines how much can be contributed — not the parent's income.

Common sources of earned income for minors include W-2 wages from part-time jobs, babysitting or lawn care income reported as self-employment, or modeling or acting income. The contribution limit is still the annual IRS limit ($7,000 for 2024 and 2025), but it cannot exceed the minor's actual earned income for that year. Once the minor reaches adulthood, they take control of the account and can manage it themselves.

Who cannot open a Roth IRA

You cannot open a Roth IRA if your income exceeds the upper phase-out limit for your filing status in that year. You also cannot open one if you have no earned income at all — not even if you have substantial savings or investment income. Non-U.S. citizens without a valid Social Security number or ITIN cannot open one, though some visa holders with ITINs can.

There is no age limit that prevents you from opening a Roth IRA. You can open one at 75, 85, or older. There is also no rule against opening multiple Roth IRAs — you can have accounts at different institutions — but your total contributions across all Roth IRAs in a year cannot exceed the annual limit.

How to open a Roth IRA once you meet the requirements

Once you confirm you have earned income and your income is below the phase-out limit, you can open a Roth IRA at any financial institution that offers them: banks, credit unions, brokerage firms, and investment companies. You will need to provide your name, address, Social Security number or ITIN, date of birth, and employment information. Most institutions let you open one online in 10 to 15 minutes.

You choose how to invest the money inside the account — stocks, bonds, mutual funds, or cash, depending on what the institution offers. You do not have to fund it immediately; you can open the account and contribute later, as long as you contribute by the tax filing deadline (usually April 15 of the following year). If you are opening a custodial account for a minor, the parent or guardian will need to provide their own identification and Social Security number as well.

Frequently Asked Questions

Can I open a Roth IRA if I am retired?

Only if you have earned income in that year. Retirement income, pensions, and Social Security do not count. If you work part-time or are self-employed in retirement, you can open a Roth IRA based on that earned income, as long as your total income stays below the phase-out limit.

What if my income is right at the phase-out limit?

If your income falls within the phase-out range, you can contribute a reduced amount. The IRS provides a worksheet to calculate the exact reduction. If your income exceeds the upper limit, you cannot contribute to a Roth IRA that year, but you may be able to use a backdoor Roth conversion instead.

Can I open a Roth IRA with no job, just self-employment income?

Yes. Self-employment income counts as earned income. You will need to file Schedule C with your tax return to report the income, and your contribution limit is based on your net profit after business expenses and the self-employment tax deduction.

Do I need to open a Roth IRA in the year I earn the income?

No. You can open the account anytime, but you must make your contribution by the tax filing deadline of the year after you earned the income — usually April 15. For example, you can open a Roth IRA in June 2025 and contribute for the 2024 tax year, as long as you do so by April 15, 2025.

Can I open a Roth IRA if I am married filing separately?

Yes, but the income phase-out range is very narrow: $0 to $10,000 for 2024 and 2025. Most married couples filing separately cannot contribute to a Roth IRA because their income exceeds this limit. Filing jointly gives you a much higher limit and is usually the better choice if you are may be able to access.