As of 2015, individuals may contribute up to $5,500 annually to their Roth IRA, states the Internal Revenue Service. This is the total amount that may be contributed to all of a person's traditional and Roth IRAs. Individuals over the age of 50 may contribute up to $6,500 per year.
Individuals who earn less than this amount in taxable income may not contribute more than 100 percent of their income to their Roth IRA, states the IRS. This limit applies to new contributions, not rollover contributions from another retirement account.
If an individual contributes more than this amount, the excess contributions are taxed at a rate of 6 percent per year, states the IRS. Individuals can avoid the tax by withdrawing excess contributions from the account.
Roth IRA accounts are for individuals whose taxable income is less than $129,000 for single taxpayers. This amount is higher for married couples, widows and widowers, states the IRS.
Unlike traditional IRAs, individuals don't get a tax deduction for money invested in the account, advises Kiplinger. However, when the individual takes money from the account after they reach the age of 59 1/2, they do so tax-free. In addition, the Roth IRA does not have mandatory withdrawals, so individuals can choose to delay using the money as long as they like. In addition, individuals can continue to contribute to the Roth IRA as long as they like if they meet the income requirements.