How Much Can You Contribute To A Roth IRA This Year

For the 2024 tax year, you can contribute up to $7,000, or $8,000 if you are age 50 or older. However, this limit begins to phase out if your modified adjusted gross income exceeds $146,000 for single filers or $230,000 for married couples filing jointly.

Roth IRA contribution limit and standard rules

The base limit for 2024 is $7,000 for anyone under age 50. The catch-up contribution raises that to $8,000 for individuals who will be 50 or older by December 31. You cannot contribute more than your total taxable earned income for the year, salary, wages, tips, or self-employment net profit, even if that amount is less than the limit. For example, if you earned $4,000 from a part-time job, your maximum Roth IRA contribution is $4,000, not $7,000. This earned-income requirement applies separately to each spouse. A non-working spouse may still contribute using the spousal IRA rule, but only if the working spouse has sufficient earned income to cover both contributions. The IRS treats this limit as a hard cap across all your IRAs combined, meaning you cannot exceed it by holding multiple accounts.

Income phase-out ranges

The ability to contribute the full amount begins to shrink once your modified adjusted gross income (MAGI) passes specific thresholds set by the IRS. For single filers and heads of household, the phase-out range runs from $146,000 to $161,000. For married couples filing jointly, the range is $230,000 to $240,000. If you are married and file separately, the phase-out starts at $0 MAGI and ends at $10,000, effectively barring most separate filers from a direct contribution. Within these ranges, you calculate your reduced limit using the IRS formula. Take your MAGI, subtract the lower threshold, divide by the width of the phase-out range, then multiply the result by the standard limit, and round up to the nearest $10. A single filer with a MAGI of $150,000 would lose roughly half the full limit, ending up with a contribution ceiling near $3,500. You must use your filing status as of December 31 of the tax year to determine which range applies.

When you cannot contribute at all

If your MAGI exceeds the top of the phase-out range, you are ineligible to make a direct Roth IRA contribution for 2024. The top is $161,000 for single filers, $240,000 for married joint filers, or $10,000 for married separate filers. A non-working spouse is not automatically ineligible when the working spouse’s income exceeds the limit. The spousal IRA rule allows the non-working spouse to contribute based on the working spouse’s earned income, but only if the couple’s combined MAGI stays within the joint phase-out range. If your income is too high for a direct contribution, you can still use a backdoor Roth IRA strategy. Make a nondeductible contribution to a traditional IRA, then convert those funds to a Roth IRA. The 5-year rule applies to earnings on converted amounts. If you withdraw converted earnings before five tax years pass, you may owe a 10% penalty. Before executing this strategy, review the hub for this topic, iras, which details how to avoid pro-rata tax complications. Additionally, if you are consolidating retirement assets, consult the guide rollover pension to IRA to ensure you do not accidentally trigger taxes on a pre-tax pension balance when moving funds into a Roth account.