Eligibility Requirements for Roth IRA Contributions You must have earned income (compensation) in order to contribute to a Roth IRA. There is no age restriction to contribute to a Roth IRA as long as you have earned income. The annual amount you can contribute to a Roth IRA is solely dependent on your adjusted gross income as determined on your federal income tax return. The following table should help you determine if you're eligible to contribute to a Roth IRA:
Eligibility requirements for Roth IRA contributions
Tax filing status | Tax year | Full contribution up to limit | Partial contribution | Not eligible |
---|---|---|---|---|
Single/Head of Household, or married filing separately and you did not live with your spouse at any time during the year | 2024 | Less than $146,000 | $146,000 to less than $161,000 | $161,000 and above |
Married Filing Jointly or qualifying widow(er) | 2024 | Less than $230,000 | $230,000 to less than $240,000 | $240,000 and above |
Married Filing Separately and lived with your spouse at any time during the year | 2024 | N/A | Less than $10,000 | $10,000 and above |
Single/Head of Household, or married filing separately and you did not live with your spouse at any time during the year | 2023 | Less than $138,000 | $138,000 to less than $153,000 | $153,000 and above |
Married Filing Jointly or qualifying widow(er) | 2023 | Less than $218,000 | $218,000 to less than $228,000 | $228,000 and above |
Filing Separately and lived with your spouse at any time during the year | 2023 | N/A | Less than $10,000 | $10,000 and above |
Annual contribution limits
Tax year | Under age 50 | Agest 50 and older |
---|---|---|
2024 | $7,000 | $8,000 |
2023 | $6,500 | $7,500 |
Contribution timing
- Contribution dollars may be withdrawn at anytime, tax and penalty-tax free.
- Earnings on the account accumulate on a tax-deferred basis and can be withdrawn free from federal income taxes, if the withdrawal is a qualified distribution as defined below.
- The Saver's Credit may provide a tax credit for those who save for retirement. You may be able to take a credit of up to $1,000 – up to $2,000 if filing jointly. The credit applies to the first $2,000 contributed to a Traditional IRA, Roth IRA, SIMPLE IRA, or 401k account by reducing the amount of federal income tax you owe dollar for dollar. The credit ranges from 10% to 50% of your contributions and is based on your filing status, adjusted gross income, and tax liability. Special rules apply.
- Contribution dollars can be withdrawn from the Roth IRA anytime, tax and penalty tax free.
- Earnings can be withdrawn tax and penalty tax free if this or another Roth IRA has been in existence for at least five years and the distribution is made because you:
- Have attained the age of 59½,
- Die,
- Become disabled, or
- Need to pay for the purchase or construction of your first home ($10,000 lifetime maximum).
- Distributions may be taken in specific amounts, as a lump sum or as a series of systematic payments.
You can also browse the Roth IRA Conversion most Frequently Asked Questions. It is important to note if you convert pre-tax retirement dollars to a Roth IRA you may owe income taxes. You should consult your tax advisor for specific guidance and advice.
- IRA to IRA transfers
- Rollovers made from or to an employer retirement plan (i.e. 401k to an IRA or IRA to a 401k)
- Conversions (i.e. funds from Traditional IRA moved directly or within 60 days to Roth IRA)
1 Earnings may be taxed at your tax rate, and a 10% tax penalty for an early withdrawal of these earnings may apply.
For educational purposes only. Neither State Farm® nor its agents provide tax or legal advice.