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.Continue Reading
Similar limits exist for other filing statuses. Qualifying widows or widowers and married filing joint taxpayers are allowed their full contribution up to $183,000. Nothing is allowed when income hits $193,000, and a partial contribution is allowed in between. For married filing separate taxpayers who did not live with their spouses at any time during the year, the limits are the same as single taxpayers. Married filing separate but lived with the spouse creates a much lower income limitation. An income below $10,000 allows a partial contribution, with none allowed if income is $10,000 or above, according to the IRS.
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.Learn more about Financial Planning