Q:

What is the contribution limit for a Roth IRA?

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Quick Answer

As of 2015, the Roth IRA contribution limit is the lesser of taxable compensation or $5,500 for taxpayers under 50 and $6,500 for taxpayers 50 and over, states the Internal Revenue Service. The IRS reduces these limits for individual and joint taxpayers who earn more than $116,000 or $183,000 respectively.

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Full Answer

The contribution limits are for the combined contributions the taxpayer makes during the tax year to all Roth and traditional IRAs, according to the IRS. However, the limits do not apply to rollover contributions or to qualified reservist repayments. If contributions exceed these limits, the IRS applies a 6 percent excise tax to the overage.

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