Eligibility & Contribution Limits

Like traditional IRAs, persons who have earned income during the year may open a Roth IRA. Unlike traditional IRAs, there is no age limit on Roth IRAs. Individuals of any age who have earned income may open and contribute to a Roth IRA. For retirees who continue to work part-time, Roth IRAs may be an attractive option since they are never subject to required minimum distributions during the owner’s lifetime.

The same general contribution limit applies to Roth IRAs — the lesser of:

  • 100% of earned income, or
  • $7,500 in 2026 ($8,600 for those age 50 or older)

The maximum total yearly contribution to all IRAs combined — deductible, nondeductible traditional, and Roth — is $7,500 ($8,600 for age 50+). An individual may not contribute $7,500 to a traditional IRA and an additional $7,500 to a Roth IRA in the same year.

The following discussion assumes Roth contributors are under age 50 unless noted otherwise.
Income Limits (2026)

Unlike traditional IRAs, the tax code prohibits certain high-income individuals from contributing to a Roth IRA based on modified adjusted gross income (MAGI):

Filing Status Full Contribution Partial Contribution (Phase-Out) No Contribution
Single / Head of Household MAGI < $153,000 $153,000 – $168,000 MAGI ≥ $168,000
Married Filing Jointly MAGI < $242,000 $242,000 – $252,000 MAGI ≥ $252,000
Married Filing Separately None $0 – $10,000 MAGI ≥ $10,000

Within the phase-out range, the allowable Roth contribution is reduced proportionally. A minimum contribution of $200 is allowed as long as the taxpayer is within the phase-out range.

Example 1: Mary McDonough, a single taxpayer with MAGI of $175,000, is ineligible to contribute to a Roth IRA because her income exceeds the $168,000 ceiling. However, she may contribute to a nondeductible traditional IRA (there is no income limit for making traditional IRA contributions, only for deducting them).
Example 2: Jim and Bobbi Holmes, a married couple filing jointly, earned $247,000. Their income falls within the 2026 phase-out range of $242,000–$252,000 (a $10,000 range). Their income exceeds the $242,000 threshold by $5,000, which is 50% of the $10,000 range. Their Roth contribution is reduced by 50%: $7,500 × 50% = $3,750 disallowed. They may each contribute up to $3,750 to a Roth IRA. The remaining $3,750 may be contributed to nondeductible traditional IRAs.

To be treated as a Roth IRA, the account must be designated as such when established. Funds in a Roth IRA must be held separately from traditional IRA funds — unlike traditional IRAs that can hold both deductible and nondeductible contributions in the same account, a separate account must be established for Roth contributions.

Excess Contributions

As with all IRAs, funds contributed in excess of the annual total dollar limit are subject to a 6% excise tax per year the excess remains in the account. With Roth IRAs there is an additional twist: taxpayers are also subject to the 6% penalty for contributions to a Roth IRA in excess of the applicable income-based limit.

Example: Tag Adams, a single taxpayer, contributes $7,500 to a Roth IRA for 2026. He earns $185,000. Although he does not exceed the $7,500 maximum dollar limit, he is not eligible to contribute to a Roth IRA because his income exceeds the $168,000 ceiling. The $7,500 excess Roth contribution is subject to a 6% penalty ($450) unless he withdraws it before his tax filing date. He could redeposit those funds in a nondeductible traditional IRA.

As with all IRAs, a taxpayer may “cure” an excess contribution by withdrawing the excess at any time before the tax filing deadline — avoiding the 6% penalty. Taxpayers may also correct the situation by underfunding future contributions. This does not eliminate the 6% penalty in the current year, but avoids the cumulative nature of the penalty in future years.

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