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Who Can Open and Contribute to a Roth IRA

By Felix Thorpe · Retirement Accounts Writer

Income limits determine whether you can contribute to a Roth IRA in a given year

The IRS sets income thresholds each year that determine whether you can put money into a Roth IRA. If your modified adjusted gross income (MAGI) falls below the limit for your filing status, you can contribute the full amount. If it falls within a phase-out range, you can contribute a reduced amount. If it exceeds the upper limit, you cannot contribute that year.

These limits change annually. For 2024, the income phase-out ranges are $146,000 to $161,000 for single filers and $230,000 to $240,000 for married couples filing jointly. For 2025, those ranges shift to $151,000 to $166,000 and $236,000 to $246,000 respectively. Your tax return or a conversation with your tax preparer can tell you your MAGI for the year you want to contribute.

If your income exceeds the upper limit, you lose the ability to contribute directly to a Roth that year. However, other routes exist—including the backdoor Roth conversion, which is covered in a separate section below.

Key Takeaways

  • You can contribute to a Roth IRA only if your modified adjusted gross income falls below the IRS limit for your filing status, which changes each year.
  • If your income falls within the phase-out range, you can contribute a partial amount, calculated by the IRS formula on Form 8606.
  • You must have earned income (wages, self-employment income, or taxable alimony) in the year you contribute; investment income alone does not count.
  • A backdoor Roth conversion allows high-income earners to fund a Roth IRA indirectly by converting a traditional IRA, though it requires careful attention to pro-rata rules.
  • Your age does not restrict Roth contributions, but you must be under age 73 to make contributions to a traditional IRA (which can then be converted).

You must have earned income to contribute

A Roth IRA requires earned income in the year you contribute. Earned income means wages from an employer, net self-employment income, or taxable alimony received. It does not include investment returns, rental income, Social Security, pensions, or interest.

The amount you contribute cannot exceed your earned income for that year. If you earned $5,000 in wages, you can contribute up to $5,000 to a Roth IRA (subject to the annual contribution limit, which is $7,000 for 2024 and 2025 if you are under age 50). If you earned $3,000, your maximum contribution is $3,000, even if you have the income limit headroom.

A spouse with no earned income can still contribute to a spousal Roth IRA if the working spouse has sufficient earned income to cover both contributions. The working spouse's income must be at least equal to the sum of both contributions.

The phase-out calculation reduces your contribution if income is in the range

If your MAGI falls within the phase-out range—not below it, not above it, but in between—you cannot contribute the full amount. The IRS provides a worksheet on Form 8606 to calculate your reduced contribution limit.

The calculation divides the phase-out range into increments. For a single filer in 2024, the range is $15,000 wide ($146,000 to $161,000). For every $50 (or fraction thereof) of income above the lower limit, your contribution limit drops by $50. If your MAGI is $151,000, you are $5,000 above the lower limit, which rounds to 100 increments of $50, reducing your limit by $5,000. If the full limit is $7,000, your reduced limit is $2,000.

You will need your exact MAGI and your filing status to work through this calculation. A tax preparer or the IRS Form 8606 instructions can walk you through it, or you can use the IRS's online MAGI calculator if you have your tax return in front of you.

A backdoor Roth conversion works if your income exceeds the limit

If your income is above the phase-out range, you cannot contribute directly to a Roth IRA. A backdoor Roth conversion is an indirect method: you contribute to a traditional IRA (which has no income limit), then convert that traditional IRA to a Roth IRA in the same year or shortly after.

The conversion itself is taxable on any earnings or pre-tax contributions in the traditional IRA. However, if you contribute to a non-deductible traditional IRA and convert it immediately, before it earns anything, the tax bill is zero or minimal. The converted amount then sits in your Roth IRA, where it grows tax-free.

The pro-rata rule complicates this if you already own a traditional IRA with pre-tax money in it. The IRS treats all your traditional IRAs as one pool for tax purposes. If you have $50,000 in a pre-tax traditional IRA and you convert $10,000 from a new non-deductible IRA, the IRS calculates what fraction of the $60,000 pool is pre-tax ($50,000 ÷ $60,000 = 83%), and taxes 83% of the $10,000 conversion. A tax professional should review your situation before you attempt a backdoor conversion if you have existing traditional IRA balances.

Age does not restrict Roth contributions, but it affects traditional IRA conversions

You can open and contribute to a Roth IRA at any age, as long as you have earned income and your MAGI is below the limit. There is no upper age limit for Roth contributions. A 75-year-old with W-2 income can contribute to a Roth IRA in the same way a 25-year-old can.

However, if you are using a backdoor Roth conversion (converting a traditional IRA to a Roth), you must be under age 73 to make a contribution to the traditional IRA that you will then convert. After age 73, you cannot contribute to a traditional IRA, though you can still convert an existing traditional IRA to a Roth if you wish.

Roth IRAs also have no required minimum distributions during your lifetime, unlike traditional IRAs. This makes them useful for people who want to let their retirement savings grow without being forced to withdraw.

Married filing separately filers face a much lower income limit

If you are married but file your tax return separately from your spouse, the Roth IRA income limit is nearly zero. For 2024 and 2025, married filing separately filers can contribute only if their MAGI is below $10,000, and the phase-out range is $10,000 wide (meaning any income above zero reduces the contribution).

This rule is rarely favorable. Most married couples file jointly, which carries a much higher limit ($230,000 to $240,000 for 2024). If you file separately, you should discuss your situation with a tax preparer to see whether filing jointly might open up Roth contributions or other tax benefits that outweigh the costs of filing jointly.

Frequently Asked Questions

What counts as earned income for a Roth IRA?

Earned income means wages from a W-2 job, net self-employment income from a business or freelance work, or taxable alimony. It does not include investment gains, rental income, Social Security, pensions, or interest. Your tax return shows your earned income in the income section.

Can I contribute to a Roth IRA if I am retired?

Only if you have earned income in that year. Retirement income like Social Security or pension payments does not count. However, if you are still working part-time or have self-employment income, you can contribute based on that earned income, regardless of your age.

Do I have to file taxes to know my MAGI?

Your MAGI is calculated on your tax return, so you need to file or prepare a return to know it. If you are unsure whether you need to file, the IRS website lists filing requirements by age and income. A tax preparer can also calculate your MAGI for you before you file.

What happens if I contribute too much to a Roth IRA?

An excess contribution is subject to a 6% penalty tax each year it remains in the account. You can withdraw the excess and any earnings on it before your tax filing deadline (plus extensions) to avoid the penalty. If you discover an excess after the deadline, you may still withdraw it, but the 6% penalty applies to the year of the excess.

Can I do a backdoor Roth if I have a 401(k)?

Yes. The pro-rata rule applies only to traditional IRAs, not to 401(k)s or other employer plans. If you have a 401(k) and a traditional IRA, you can do a backdoor Roth without the pro-rata calculation affecting you—as long as you have no pre-tax money in any traditional IRA. A financial advisor or tax preparer can confirm your situation.