2024 Roth IRA Limits
| Age | 2024 Contribution Limit |
|---|---|
| Under 50 | $7,000 |
| 50 and older (catch-up) | $8,000 |
The limit is per person, not per account. You can have multiple IRAs but total contributions across all IRAs cannot exceed the limit. You can also contribute to both a Roth IRA and a 401(k) in the same year.
Income Limits: Who Can Contribute?
| Filing Status | Full Contribution | Phase-Out Range | No Contribution |
|---|---|---|---|
| Single / HoH | MAGI < $146,000 | $146,000 – $161,000 | MAGI ≥ $161,000 |
| Married Filing Jointly | MAGI < $230,000 | $230,000 – $240,000 | MAGI ≥ $240,000 |
| Married Filing Separately | MAGI = $0 | $0 – $10,000 | MAGI ≥ $10,000 |
Advertisement
Roth vs. Traditional IRA
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Contributions | After-tax (no deduction) | Pre-tax (may be deductible) |
| Withdrawals in retirement | ✅ Tax-free | Taxed as ordinary income |
| Required Minimum Distributions | ❌ None | ✅ Start at age 73 |
| Income limits | ✅ Yes (phase-out) | Only if workplace plan exists |
| Best for | Expect higher tax rate in retirement | Want deduction now; lower tax rate in retirement |
Backdoor Roth: For High Earners
If your income exceeds the Roth IRA limit, you can use the backdoor Roth strategy:
- Contribute to a non-deductible Traditional IRA (no income limit)
- Convert the Traditional IRA to a Roth IRA
- Pay tax only on any earnings between contribution and conversion (usually minimal if done quickly)
The 5-Year Rule
To withdraw Roth IRA earnings tax-free, your account must be at least 5 years old AND you must be 59½ or older (or qualify for an exception). Contributions (not earnings) can always be withdrawn penalty-free at any time.