Roth IRA Contribution and Income Limits: A Comprehensive Rules Guide
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| Roth IRA Income and Contribution Limits for 2024 | ||
|---|---|---|
| Filing Status | 2024 MAGI | Contribution Limit |
| Married filing jointly (or qualifying widow(er)) | ||
| Less than $230,000 | $7,000 ($8,000 if age 50 or older) | |
| $230,000 to $240,000 | Begin to phase out | |
| $240,000 or more | Ineligible for direct Roth IRA | |
| Married filing separately (and you lived with your spouse at any time during the last year) | ||
| Less than $10,000 | Begin to phase out | |
| $10,000 or more | Ineligible for direct Roth IRA | |
| Single, head of household, or married filing separately (and you didn’t live with your spouse at any time during the last year) | ||
| Less than $146,000 | $7,000 ($8,000 if age 50 or older) | |
| $146,000 to $161,000 | Begin to phase out | |
| $161,000 or more | Ineligible for direct Roth IRA | |
Married filing separately and head of household filers can use the limits for single people if they have not lived with their spouse in the past year.
Roth IRA Contribution Limits
Anyone of any age can contribute to a Roth IRA, but the annual contribution cannot exceed their earned income. Let’s say that Henry and Henrietta, a married couple filing jointly, have a combined MAGI of $175,000. Both earn $87,500 a year, and both have Roth IRAs. In 2023, they can each contribute the maximum amount of $6,500 to their accounts, for a total of $13,000. This amount increases to $7,000 in 2024 for a total of $14,000 as long as they don’t exceed the appropriate MAGI threshold.
Couples with highly disparate incomes might be tempted to add the higher-earning spouse’s name to a Roth account to increase the amount that they can contribute. Unfortunately, IRS rules prevent you from maintaining joint Roth IRAs—that’s why the word “individual” is in the account name; however, you may accomplish your goal of contributing larger sums if your spouse establishes their own IRA, whether they work or not.
You may be able to get around income limits by converting a traditional IRA into a Roth…
2023-11-04 13:24:15
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