IRA Contribution Limits

Elizabeth MacBride

How Much Can You Contribute to a Roth IRA?

For 2014 or 2015, you can contribute $5,500 total to your Traditional IRAs. If you're 65 or older, you can contribute $6,500.

Most Americans can also deduct their contributions, but your ability to deduct could be affected by your income and whether you or your spouse is covered by an employer plan, like a 401k. The details are in the chart below.

If you are unable to deduct your contributions, you may want to consider a Roth IRA [link]. Roth IRAs are not tax-deductible when you put money in, but all of the money you withdraw is tax free. Your annual contribution limits apply to Roth and Traditional IRAs combined, but Roth IRAs have different income limits.

The contribution limit doesn't apply to rollovers, so you can contribute any amount to your IRAs as long as it is coming from another retirement plan.. (A rollover is when you move money from a 401k into an IRA or from one IRA to another.)

If you accidentally contribute too much to your account, take it out again. But until you do, you'll owe a 6% tax on the excess.

You can take the full deduction for your contribution, unless you or your spouse is covered by a retirement plan at work. If you are covered by the plan, you can still contribute up to the limit, but your deduction could be limited.

Tax Filing Status Modified AGI or "MAGI"* Eligible Deduction
Single, head of household, or qualifying widow(er)  $61,000 or less  $5,500 ($6,500 for those 50 and older)
  More than $61,000 but less than $71,000 Partial deduction
  $71,000 or more No deduction
Married filing jointly and your spouse is covered by a plan at work $98,000 or less $5,500 ($6,500 for those 50 and older).
  More than $98,000 and less than $118,000 Partial deduction
  $118,000 or more No deduction
Married filing jointly or married filing separately and your spouse is not covered by a plan at work $183,000 or less $5,500 ($6,500 for those 50 and older).
  More than $183,000 but less than $193,000 Partial deduction
  $193,000 or more No deduction
Married filing separately with a spouse who is covered by a plan at work Less than $10,000 Partial deduction
  $10,000 or more No deduction

* What is My MAGI?

The earning limits are based something called your modified adjusted gross income (MAGI). MAGI is calculated by taking the adjusted gross income from you tax forms and adding back deductions for things like student loan interest and higher education expenses.

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Important IRA Information

Each year, the IRS updates the rules for Traditional IRAs. Here are all the details for 2015: