The amount you can contribute is based on your modified adjusted gross income and
tax filing status.
Generally, the limit is $5,500 per year, but the ability to make Roth IRA contributions is subject to income limits. "Roth IRAs were designed for people to consider saving money for retirement because they would get a tax break on the gains on the investments in the retirement account," explains Debra Greenberg, a director in the Personal Retirement Solutions Group at Bank of America Merrill Lynch. As a result, 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.
What are the income limits to contribute to a Roth IRA?
For 2018, a single individual or head of household with MAGI of $120,000 or less, or a married couple filing jointly with a MAGI of $189,000 or less, may contribute the full allowable amount to a Roth IRA. A single individual or head of household with MAGI between $120,000 and $135,000, or a married couple filing a joint return with MAGI between $189,000 and $199,000, can make reduced contributions to a Roth IRA. But if your MAGI exceeds these amounts, you are not eligible to contribute to a Roth IRA at all. 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 $6,500 per year.
What if I have both a Roth and Traditional IRA?
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 $5,500 ($6,500 if you're 50 or older at any time during the calendar year to which the contributions relate).