Roth IRA Income Limits and Contribution Limits 2024

Roth IRAs come with a nice perk — tax-free withdrawals in retirement as long as you're 59½ and have held the account for at least five years.

But your ability to contribute to one depends on a few things, such as your income, your tax filing status, and other contributions you may have made to other IRA accounts.

» Ready to crunch the numbers? Jump to our Roth IRA contribution calculator.

Roth IRA contribution limits 2024

For 2024, the Roth IRA contribution limit is $7,000 for those under 50, and $8,000 for those 50 or older.

The cap applies to contributions made across all IRAs you might have. For example, you can contribute to both your Roth IRA and traditional IRA in the same year, but the combined contributions can't equal more than $7,000 for those under 50, or $8,000 for those 50 or older.

Roth IRA income limits 2024

Your tax-filing status and modified adjusted gross income, or MAGI, determine how much money – if any – you can put into a Roth IRA.

It works like this: if your MAGI is less than $146,000 in 2024 and you're a single filer (or less than $230,000 for those married filing jointly), you can contribute the full amount.

If your MAGI is between $146,000 and $161,000 as a single filer, or between $230,000 and $240,000 if you're married filing jointly, your contribution is reduced. If your MAGI is higher than $161,000 for single filers or higher than $240,000 for those married filing jointly, you are not eligible to contribute.

Roth IRA contribution calculator

If your income reduces your Roth IRA contribution

If your contribution is reduced because of your income, contributing to a Roth (if you're eligible) can still be an option. Any amount you contribute adds to your Roth IRA balance, which grows tax-free, and you're still able to take those qualified distributions tax-free in retirement.

You’ll also gain some valuable tax diversification in retirement: Because Roth IRA distributions aren’t included in your taxable income in retirement, pulling money from that pot, in addition to a traditional IRA or 401(k), could keep you in a lower tax bracket, potentially reducing your Social Security and Medicare taxes, which increase at higher income levels.

» Start shopping: See our list of best Roth IRA accounts

If your income exceeds the Roth IRA limits

If your income is too high, you won't be able to contribute to a Roth IRA directly, but you do have an option to get around the income limit: a backdoor Roth IRA. This involves putting money in a traditional IRA and then converting the account to a Roth IRA.

If you have a 401(k), you could also consider a mega backdoor Roth, though this process may be more involved and incur potential tax bills. Working with a tax professional who’s familiar with your financial situation could be helpful.

» Learn more: How to find and vet a CPA

Other Roth IRA rules

Earned income restriction

The fine print on Roth IRA contribution limits is that you can’t contribute more than your earned income for the year.

If, for example, your taxable compensation in 2024 is $3,000, that means your Roth IRA contribution limit is also $3,000. If you don’t have any earned income during the year, you can’t contribute. (The exception is the spousal IRA, which allows a nonworking spouse to contribute to an IRA based on the taxable compensation of the working spouse.)

Excess Roth IRA contributions

Making an excess contribution to your Roth IRA could trigger IRS penalties. Given the Roth IRA's contribution rules, this could happen if you receive a salary bump or bonus that shifts you to a higher income range after making a contribution. It could also happen if you use more than one IRA and contribute beyond the shared limit.

But here’s the good news: You’re allowed to backtrack. If you realize your mistake prior to filing your tax return, withdraw the excess contributions and the earnings you received on them.

If you’ve already filed, you can remove the excess and earnings within six months, and file an amended tax return. In both cases, you’ll pay taxes on the earnings, but no penalty^[0]

Another option is to reduce the following year’s contribution by the excess amount, but you’ll pay a 6% penalty on the excess that was contributed, for every year it remains in the account. If you have questions about removing excess funds, it may make sense to work with a tax advisor.