Income limits determine whether you can contribute to a Roth IRA in a given year

The IRS sets income thresholds each year. If your income falls below the limit for your filing status, you can contribute the full amount allowed. If your income is above the limit, your contribution amount phases out — meaning it shrinks as your income rises. If your income exceeds the upper limit, you cannot contribute directly to a Roth IRA that year.

These limits change annually. For 2024, the phase-out ranges are $146,000 to $161,000 for single filers and $230,000 to $240,000 for married couples filing jointly. For 2025, they are $161,000 to $176,000 for single filers and $253,000 to $263,000 for married couples filing jointly. The IRS publishes updated limits each January.

Your income for this purpose is your modified adjusted gross income (MAGI), not your total salary. MAGI includes certain deductions and exclusions that differ from your standard tax return income. If you are unsure how to calculate your MAGI, a tax preparer or the IRS website can walk you through it.

Key Takeaways

  • You must have earned income in the year you want to contribute — money from investments, pensions, or unemployment does not count.
  • Income limits apply based on your filing status, and they change every year; exceeding the upper limit blocks you from contributing that year.
  • You can open a Roth IRA at any age, but you cannot contribute if you have no earned income, regardless of your age.
  • If your income is too high to contribute directly, a backdoor Roth conversion may be an option, though this involves specific steps and tax rules.
  • Married couples filing separately face much lower income limits ($0 to $10,000) and should file jointly if possible to access higher thresholds.

You must have earned income to contribute

Earned income means money you received 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 had no earned income in a year, you cannot contribute to a Roth IRA that year, even if you have money in the bank.

The amount you can contribute is limited to the lesser of your earned income or the annual contribution limit. For 2024, the limit is $7,000 per person (or $8,000 if you are age 50 or older). For 2025, it remains $7,000 ($8,000 if age 50+). If you earned only $4,000 that year, you can contribute only $4,000, not the full $7,000.

A spouse with no earned income can still contribute if the other spouse has earned income and they file jointly. This is called a spousal Roth IRA contribution, and the working spouse's income must be at least equal to the total contributions for both spouses.

Age does not restrict who can open a Roth IRA

Unlike traditional IRAs, which require you to stop contributing at age 73, a Roth IRA has no age limit. You can open one and contribute at any age — even at 80 or 90 — as long as you have earned income that year and your income is below the phase-out limit.

A minor can also open a Roth IRA if they have earned income. A teenager working a summer job can contribute up to their earnings that year. A parent or guardian must open the account on their behalf if they are under the age of majority in their state, but the minor's name is on the account and the money belongs to them.

Filing status affects your income limits

Single filers and heads of household have one set of limits. Married couples filing jointly have higher limits, allowing more income before the phase-out begins. Married couples filing separately face very restrictive limits — the phase-out range is $0 to $10,000, meaning almost any income disqualifies you from contributing.

If you are married and your spouse has income but you do not, filing jointly lets you use their income for a spousal contribution. Filing separately would block both of you from contributing. For this reason, tax professionals generally recommend married couples file jointly when considering Roth contributions.

What happens if your income exceeds the limit

If your income falls within the phase-out range, your contribution limit shrinks proportionally. The IRS provides a worksheet to calculate the reduced amount. If your income exceeds the upper limit entirely, you cannot make a direct contribution that year.

When you cannot contribute directly because your income is too high, some people use a backdoor Roth conversion. This involves contributing to a traditional IRA (which has no income limit) and then converting it to a Roth IRA. This strategy has specific rules and tax consequences, and mistakes can be costly. If you are considering this route, consult a tax professional before moving money.

You do not need to be a U.S. citizen, but you need a tax ID

You must have a Social Security number or Individual Taxpayer Identification Number (ITIN) to open a Roth IRA. U.S. citizens, permanent residents, and some visa holders can obtain these numbers. Non-residents and those without work authorization typically cannot open a Roth IRA.

If you are unsure whether you have the right tax ID status, contact the IRS or a tax preparer. The financial institution where you want to open the account can also tell you what documentation they require.

Frequently Asked Questions

Can I open a Roth IRA if I am retired?

Only if you have earned income that year. Retirement income, Social Security, and pension payments do not count. If you work part-time or are self-employed in retirement, you can contribute based on that earned income, regardless of your age.

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

The IRS provides a calculation worksheet to determine your exact reduced contribution amount. Your financial institution or a tax preparer can help you work through it. You are not blocked from contributing — your allowable amount is simply less than the full limit.

Does my spouse's income count toward my limit?

Only if you file jointly. If you file separately, your own income determines your limit. If you file jointly and your spouse has high income, it counts toward the household phase-out range, which may reduce or block your contribution even if your personal income is low.

Can I contribute to a Roth IRA if I have a 401(k) at work?

Yes. Having a 401(k) does not affect your Roth IRA income limits. However, if you also have a traditional IRA, there are tax rules about converting to a Roth that you should review with a tax professional.

What if I made too much money and already contributed?

You can withdraw the excess contribution and any earnings on it before your tax return deadline (including extensions). The earnings portion may be subject to tax and a 10% penalty if you are under 59½. File Form 8606 with your tax return to report the withdrawal. Consult a tax professional to handle this correctly.