Generally, the allowed contributions to an individual retirement account are the lesser of $5,500, increased to $6,500 for taxpayers age 50 and older, or taxable compensation for the year. As of 2015, combined Roth and traditional IRA contributions cannot exceed this limitation, according to the Internal Revenue Service. The contribution limit does not apply to rollover contributions or qualified reservist repayments.Continue Reading
Roth contributions are limited by income, the IRS explains. Single and head of household taxpayers are allowed to contribute the full $5,500 if their modified adjusted gross income is at least $5,500 but less than $116,000. With incomes between $116,000 and $131,000, contributions are partially allowed. At $131,000 and above, no contribution to a Roth IRA is allowed. The IRS provides worksheets and instructions in Publication 590-A to calculate the amount allowed.
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.Learn more about Financial Planning