Roth IRA Contribution Rules: Limits & Guidelines for 2024

Understanding Roth IRA contribution rules can help you avoid any complications when saving for retirement. Here are the basics of the Roth IRA contribution rules and how to work with them.

Contribution Limit

When you have a Roth IRA, you are allowed to contribute up to $5000 per year of after-tax money to the account. Once you reach the age of 50, you can start contributing as much as $6000 per year. Since this limit pertains to after-tax money, this allows you to save more money toward your retirement than someone with a traditional IRA.

Income Limits

In order to be able to contribute to a Roth IRA, you must fit into a certain income range. If you are single, you have to make less than $105,000 in order to be able to contribute fully. If you are a married couple, you have to make less than $166,000 in order to be able to contribute.

If you make between $105,000 and $120,000 per year as an individual, you can contribute a partial amount less than $5000. If you are a married couple, your income has to be between $166,000 and $176,000 in order to be eligible for a partial contribution to your account.