How much can you contribute to a Roth IRA?

Roth IRA contributions might be limited if your income exceeds a certain level. Danny, an unmarried college student earned $3,500 in 2020. Danny can contribute $3,500, the amount of his compensation, to his IRA for 2020. Danny's grandmother can make the contribution on his behalf. John, age 42, has a traditional IRA and a Roth IRA.

How much can you contribute to a Roth IRA in 2024?

The fine print on Roth IRA contribution limits is that you can’t contribute more than your earned income for the year. If, for example, your taxable compensation in 2024 is $3,000, that means your Roth IRA contribution limit is also $3,000.

How much money can you invest in a Roth IRA?

They include untaxed combat pay, military differential pay, and taxed alimony. The contribution limit for a Roth IRA is $6,500 (or $7,500 if you are over 50) in 2023. You're allowed to invest $7,000 (or $8,000 if you're 50 or older) in 2024. Those are the caps even if you make more, up to the phase-out level.