More contribution and distribution basics
- $6,000 ($7,000 if you’re age 50 or older), or
- Your taxable compensation for the year, if your compensation was less than this dollar limit.
The IRA contribution limit does not apply to Rollover contributions
Are contributions to a Traditional IRA tax deductible?
- If you (or your spouse) are not covered by an employer-sponsored retirement plan, then your contributions are fully deductible.
- For 2019 only if your Adjusted Gross Income (AGI) is less than $74,000 (single filer or head of household) or less than $123,000 for joint filers. If your income is near these limits, your contributions may be only partially deductible. Try our IRA Finder Tool for more information.
- If you are covered by an employer-sponsored retirement plan and your AGI is above these limits, you can still contribute to a Traditional IRA, but your contributions will not be deductible.
Is there an age limit for contributions?
- Yes. Contributions to a Traditional IRA are not allowed after age 70½.
Am I eligible to contribute to a Roth IRA?
- Yes, for 2019 so long as you have earned income and your federal adjusted gross income is under $137,000 (single filer, head of household, or married filing separately) or $203,000 if you're married and file a joint federal income tax return or qualifying widow(er).
- If your income is near these limits, the amount you can contribute may be reduced. Try our IRA Finder Tool for more information.
Are withdrawals from my Roth IRA tax free?
Yes, as long as you meet these criteria for a "qualified withdrawal" as defined by the IRS. That means your Roth IRA was opened more than 5 years ago and either:
- You're older than 59-1/2, or
- You're disabled, or
- You meet the requirements for a first-time home purchase, or
- Your balance is being paid to a beneficiary after your death
What about withdrawals to buy a home?
- You can also make a penalty free withdrawal of up to $10,000 at any age to make a qualified first-home purchase.