Can I contribute to a Roth IRA if I'm retired?
Yes, you can, but only if you have taxable compensation. Roth IRAs were designed to help people save for retirement with the advantage of tax-free growth. So they're really most useful as a way to invest for growth in the years before you retire.
"For purposes of the annual limit, 'compensation' generally includes wages from employment or earned income from self-employment."
— Kevin O'Neil, managing director and product management executive,
Personal Retirement Solutions, Investment Solutions Group, Merrill
Is there an age limit for contributing?
No. Roth IRAs have no age limit for contributing. You just need to have taxable compensation equal to or greater than your contribution.
What are the contribution limits?
Roth IRAs were designed to help people save money for retirement because qualified distributions of the gains on the investments in the account would be federally tax free later on. Each year, the IRS sets contribution limits, which are adjusted for inflation. For 2025, the contribution limit is $7,000 per year ($8,000 if you're age 50 or older), or your taxable compensation for the year if you earn less than that amount. Anyone earning above a certain threshold faces additional limits on how much they can contribute.
For purposes of the requirement described above that you cannot contribute more than your taxable compensation, "compensation" generally includes wages from employment or earned income from self-employment. Non-taxable income from Social Security, pensions or investments doesn't count. But earnings from a part-time or consulting job, for instance, would be included. Check with your tax advisor to see if your income would affect your eligibility to contribute to a Roth IRA. To learn more, refer to the
Annual Limits Guide (PDF).
Generally, if you're not earning any income, you can't contribute to either a traditional or a Roth IRA. However, in some cases, married couples filing jointly may be able to make IRA contributions based on the taxable compensation reported on their joint return.
The amount is based on modified adjusted gross income (MAGI) ranges that are published annually and correspond to your federal
tax filing status. If your MAGI is
- less than the lower income threshold, you are eligible to contribute up to the annual contribution limit for the year
- between the upper- and lower-income thresholds, you are eligible to make a partial Roth IRA contribution
- above the upper income threshold, you are not eligible to contribute to a Roth IRA
How do spousal contributions to a Roth IRA work if you are a non-earning spouse?
As long as your spouse earns enough to cover your contribution, and you file your tax return jointly, your spouse could contribute up to the maximum allowable limit for you. So, for example, if you're both 50 or older during the 2025 calendar year, as long as your spouse has $16,000 in compensation and you and your spouse do not exceed the MAGI limits, your spouse could contribute up to $8,000 annually to a Roth IRA in their name, and up to $8,000 annually to a Roth IRA in your name.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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