What Is the Maximum Contribution Amount to a Roth IRA?

The Internal Revenue Service restricts both who can contribute to a Roth IRA and how much can be contributed. However, the IRS has no limit on how much money can be in a Roth IRA.

Standard Limits

Roth IRAs share the same contribution limits with traditional IRAs. As of 2010, the limit equals $5,000 per year. If you are 50 or older, you can contribute an extra $1,000 per year, for a total of $6,000.

Considerations

If your modified adjusted gross income (MAGI) falls in the phase-out range for your Roth IRA filing status, you will have a reduced contribution limit. If your MAGI exceeds the limit for your filing status, you cannot contribute to a Roth IRA. The MAGI income limits for Roth IRAs change each year and can be found in IRS Publication 590.

Warning

Your Roth IRA contribution cannot exceed your earned income for the year. Earned income includes your salary, but not investment income.

References

• Internal Revenue Service: Publication 590 (Chapter 2)
• State Farm: Roth IRA
• Internal Revenue Service: What is Earned Income?