The amount you can contribute is based on your modified adjusted gross income and tax filing status.
Generally, the limit is $6,000 per year ($7,000 if you're age 50 or older), but the ability to make Roth IRA contributions is subject to income limits. Roth IRAs were designed as a way 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. Anyone earning above a certain threshold faces limits on how much they can contribute. The amount is based on your modified adjusted gross income (MAGI) and
tax filing status. New provisions of the CARES Act, signed into law in March 2020, feature changes to rules governing IRAs.
Learn more about what the CARES Act could mean for you.
The amount you can contribute is based on your modified adjusted gross income and tax filing status.
What's the maximum I can contribute to a Roth IRA in 2020?
Comparison of how your income affects contribution limits.
MAGI* or Modified Adjusted Gross Income
below $124k (single);
below $196k (married)
$6,000 for single/$7,000 for married
MAGI* or Modified Adjusted Gross Income
$124k to $139k (single);
$196k to $206k (married)
< Less than $6,000 for single/Less than $7,000 for married
MAGI* or Modified Adjusted Gross Income
$139k or above (single);
$206k or above (married)
* Modified Adjusted Gross Income
What are the income limits to contribute to a Roth IRA?
For 2020, a single individual or head of household with MAGI of less than $124,000, or a married couple filing jointly with a MAGI of less than $196,000, may contribute the full allowable amount to a Roth IRA. A single individual or head of household with MAGI between $124,000 and $139,000, or a married couple filing a joint return with MAGI between $196,000 and $206,000, can make reduced contributions to a Roth IRA. But if your MAGI equals or exceeds these amounts, you are not eligible to contribute to a Roth IRA. Check IRS rules for more information on the specific contribution limits.
Are catch-up contributions allowed?
If you're 50 or older at any time during the calendar year to which the contributions relate, you can add a $1,000 catch-up contribution, for a total contribution limit of $7,000 for 2020.
What if I have both a Roth and a traditional IRA?
In 2020, you can contribute to a Roth IRA and a traditional IRA in the same year as long as your total contributions to all of your IRA accounts don't exceed $6,000 ($7,000 if you're 50 or older at any time during the calendar year to which the contributions relate).
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