Key takeaways

• Roth IRA contribution limits will be $7,500 ($8,600 if 50 or older) in 2026, up from $7,000 ($8,000) in 2025
• Income limits increase in 2026 so more earners may qualify to contribute to a Roth IRA
• Roth IRAs offer tax-free growth and withdrawals with no required distributions in retirement

Roth IRAs can be a great option for your retirement savings, but there are some rules to keep in mind if you are considering taking advantage of this type of account.

What is a Roth IRA?

A Roth IRA is an individual retirement account (IRA) funded with after-tax dollars, meaning taxes are paid upfront so that qualified withdrawals are completely tax-free. Contributions can be withdrawn at any time without taxes or penalties, though specific rules apply to earnings withdrawals. Like other retirement accounts, Roth IRAs have defined eligibility, contribution, and withdrawal rules set by the IRS.

Roth IRA eligibility

In order to contribute to a Roth IRA, you must have earned income and your modified adjusted gross income (MAGI) must be below the IRS limits. Your individual contribution limit is determined based on your filing status and your Modified Adjusted Gross Income (MAGI).¹ Based on these factors, you may be able to contribute the maximum amount, a reduced amount, or nothing at all. As income rises within the IRS phase-out range, the maximum allowable contribution gradually decreases until it reaches zero at the upper limit — though savers may still use a backdoor Roth conversion to contribute indirectly.

Wondering how to figure out your MAGI? Your MAGI is calculated by taking the Adjusted Gross Income (AGI) from your tax return and adding  certain deductions such as student loan interest, self-employed taxes, home interest payments, and higher education expenses.

Roth IRA limits

What is the Roth IRA contribution limit for 2026?

For the 2026 tax year, the limit on annual contributions to an IRA has increased to $7,500 from $7,000 in 2025. Those over age 50 can contribute an additional $1,100 in catch up contributions, bringing the total possible contribution to $8,600.²

Roth IRA income limits 2026

What is the Roth IRA contribution limit for 2025?

Contributions to Roth IRAs can be made until the federal tax filing day of the following year. You can still contribute to your Roth IRA for 2025 until April 15, 2026.  For the 2025 tax year, the maximum amount you can contribute to a Roth IRA is $7,000, or $8,000 if you are 50 or older.³

Roth IRA income limits 2025

Read more: Roth vs. traditional IRA: Which should I choose?

Roth IRA earned income rules

Many of the rules for Roth IRAs have to do with eligibility. One of the main eligibility requirements is that you must have earned income. Earned income can come in several forms, including commissions, tips, bonuses, taxable fringe benefits from an employer who pays you, or via income from your own business. Additional types of income that can help fund your Roth IRA are combat pay, disability benefits, or taxed alimonies.

It’s important to note that certain income types will not qualify as earned income, and therefore you can’t use them to contribute to a Roth IRA. For example, non-taxable alimony, unemployment benefits, social security benefits, child support, and any type of investment income from securities, rental properties or other assets are considered “unearned income.”

Roth IRA age requirements

Roth IRA contributions don’t have an age requirement, so even young students and teenagers can open a Roth IRA (subject to state law age of majority requirements) and contribute their earnings from a summer job into their account, as long as their earned income is within the set limits for Roth IRAs.

2026 Roth IRA contribution rules

In addition to restrictions around income, there are other rules around Roth IRA contributions to be aware of.

Traditional & Roth IRAs

It’s possible to have both a traditional IRA and a Roth IRA, but the yearly contribution limit applies collectively to both types of IRAs.

For example, if Mary is younger than 50 years old, files her taxes as single and reports a MAGI of $120,000, she can deposit up to $7,500 for the 2026 tax year and split the amount in any manner between her traditional and Roth IRA. She just can’t exceed $7,500 in total contributions. It should also be noted that in this scenario, Mary may not want to contribute to a traditional IRA due to her high-income level and deductibility rules.

Contribution deadline

Contributions to Roth IRAs can be made until the federal tax filing day of the following year. Using our above example for Mary, she will be able to contribute to her Roth IRA for 2025 until the federal tax deadline of April 15, 2026. For 2026, she’ll be able to contribute until the federal tax deadline of April 15, 2027.

Roth conversions

What if you have an existing traditional IRA and you would like to move those funds into a Roth IRA? This can be done as a Roth conversion. You may also be able to move your 401(k) account to a Roth IRA if you are eligible to receive a distribution of your 401(k) plan.

It’s important to note that conversions from other retirement accounts have no impact on your IRA contribution limit but may increase your total MAGI and therefore trigger a phaseout of your Roth IRA contribution amount.

Those who are not eligible for Roth contributions due to income limitations are generally still eligible to convert dollars from traditional retirement plans. Talk with an accountant, your financial advisor, or another financial professional to see if this makes sense for you.

Read more: Roth IRA investment returns

Tax benefits of Roth IRA contributions

One of the main benefits of contributing to Roth IRAs is that you are not taxed on any investment earnings when you take qualified withdrawals. And, since Roth IRAs are funded with after-tax dollars, you can withdraw your contributions at any time without a penalty. So, if you’re looking for a current tax deduction, a Roth IRA is probably not the ideal investment tool for you.

Saver’s credit

Conversely, if you have an income that is low to moderate, you may be eligible for a tax credit through the Retirement Savings Contributions Credit (Saver’s Credit). This applies to those who are:

• 18 years old or older
• Not claimed as a dependent on another person’s tax return
• Not a full-time student

The Saver’s Credit helps taxpayers offset a portion of the first $2,000 ($4,000 if married filing jointly) they voluntarily contribute to IRAs, 401(k) plans, and similar workplace retirement programs. Depending on your adjusted gross income, the credit is either 10%, 20%, or 50% of eligible contributions.

The income levels for the Saver’s Credit are revised every year to account for inflation.

Here are the income limits for the Saver’s Credit for the 2025 tax year, filed in 2026.⁴

*Single, married filing separately, or qualifying widow(er)

Roth IRA withdrawal rules

One of the benefits of a Roth IRA is that qualified withdrawals of investment earnings are tax-free. With Roth IRAs, you can leave your money untouched if you want to keep the funds in the account, as there are no required minimum distributions (RMDs) until it potentially becomes inherited.

Keep in mind there are several rules to follow to help you avoid having to pay taxes or penalties for withdrawing any earnings from a Roth IRA:

• If you are 59½ years or older, have held the Roth IRA for at least five years, and wish to withdraw from your account, you will not be subject to any taxes or penalties (if you’ve converted dollars into the Roth IRA, this may get more complicated).
• If you’re younger than 59½ and withdraw for events such as higher education expenses, a first-time home purchase, medical expenses, or unexpected family events, you may be able to avoid the early withdrawal penalty (but may have to pay taxes on any growth). It’s advisable to speak with a tax professional beforehand to confirm your qualifications.
• For those aged 59½ or older but who have had their Roth IRA for less than five years, their withdrawn earnings are subject to taxes, but not the penalty.

Read more: Roth IRA withdrawal rules

Excess Roth IRA contributions and penalties

There are instances in which you might have over-contributed to your Roth IRA, though the most likely is that you earned more in the calendar year than you initially expected. If you exceed the Roth IRA income limit but have already maxed out your Roth IRA, you’ll need to take action to remedy this before filing your tax return. If you don’t remove the excess contributions from your IRA by the filing deadline, the IRS will impose a 6% tax on your excess contributions.⁵

There are three ways to handle excess Roth IRA contributions:

1. Withdraw your excess contributions: You may withdraw your excess contributions and any earnings on the contributions to avoid the 6% tax, though you’ll need to treat any investment earnings as part of your taxable income for the year.
2. Recharacterize the excess contributions: You can contact the financial institution that provides your Roth IRA account and request for the funds to be recharacterized by moving them into a traditional IRA.
3. Apply your excess contributions to the upcoming tax year: You can apply the excess contribution and its earnings to the next year's Roth IRA contributions provided you stay within the limits for that year.

Is a Roth IRA right for you?

Contributions to Roth IRAs aren’t tax-deductible, but qualified withdrawals of investment earnings are tax-free. In sum, it’s a matter of paying taxes now (Roth) or later (traditional IRA).

Roth IRAs have no required minimum distributions (RMDs) until inherited and can be left as an inheritance or future nest egg to tap into.

Because of these features, Roth accounts may be good investment tools for people who believe their tax bracket in retirement will be higher than it is now. If you think you’ll be taxed higher in retirement, then it may be better to pay the taxes now.