Roth IRA contributions have income limits that affect your eligibility to contribute the full amount and how much you can contribute before the limit starts to phase out. It’s important to note that these limits apply to your Modified Adjusted Gross Income (MAGI) for the tax year you’re contributing to.
There are no hard income limits where you become completely ineligible to contribute to a Roth IRA. However, as your MAGI approaches a certain range, your contribution amount starts to get phased out. This means you can contribute less than the maximum limit.
Here’s a breakdown of the Roth IRA contribution limits and phase-out ranges for 2024:
- Phase-Out Ranges:
- Single filers & Married Filing Separately (lived apart): $146,000 – $161,000
- You can contribute the full amount if your MAGI is below $146,000.
- Your contribution amount starts to decrease between $146,000 and $161,000.
- You cannot contribute anything to a Roth IRA if your MAGI is above $161,000.
- Married Filing Jointly & Qualifying Widow(er): $230,000 – $240,000
- You can contribute the full amount if your MAGI is below $230,000.
- Your contribution amount starts to decrease between $230,000 and $240,000.
- You cannot contribute anything to a Roth IRA if your MAGI is above $240,000.
- Single filers & Married Filing Separately (lived apart): $146,000 – $161,000
Keep in mind: These limits apply to your MAGI for the tax year you’re contributing to. You can find the latest official information on the IRS website: [IRS roth ira ON IRS (.gov) irs.gov]