Eligibility Requirements for Roth IRA Contributions
You must have earned income (compensation) in order to contribute to a Roth IRA. There is no age restriction to contribute to a Roth IRA as long as you have earned income. The annual amount you can contribute to a Roth IRA is solely dependent on your adjusted gross income as determined on your federal income tax return.
The following table should help you determine if you're eligible to contribute to a Roth IRA:
Eligibility requirements for Roth IRA contributions
| Tax filing status | Tax year | Full contribution up to limit | Partial contribution | Not eligible |
|---|---|---|---|---|
| Single/Head of Household, or married filing separately and you did not live with your spouse at any time during the year | 2024 | Less than $146,000 | $146,000 to less than $161,000 | $161,000 and above |
| Married Filing Jointly or qualifying widow(er) | 2024 | Less than $230,000 | $230,000 to less than $240,000 | $240,000 and above |
| Married Filing Separately and lived with your spouse at any time during the year | 2024 | N/A | Less than $10,000 | $10,000 and above |
| Single/Head of Household, or married filing separately and you did not live with your spouse at any time during the year | 2025 | Less than $150,000 | $150,000 to less than $165,000 | $165,000 and above |
| Married Filing Jointly or qualifying widow(er) | 2025 | Less than $236,000 | $236,000 to less than $246,000 | $246,000 and above |
| Filing Separately and lived with your spouse at any time during the year | 2025 | N/A | Less than $10,000 | $10,000 and above |
Annual contribution limits
| Tax year | Under age 50 | Agest 50 and older |
|---|---|---|
| 2024 | $7,000 | $8,000 |
| 2025 | $7,000 | $8,000 |
You can make annual contributions to a Roth IRA of up to $7,000 for 2024 ($7,000 for 2025) or 100% of your earned income, whichever is less. Current law permits most couples (who are legally married and filing jointly) to contribute up to $7,000 for 2024 ($7,000 for 2025) each to their IRAs as long as their combined compensation is at least $14,000 in 2024 ($14,000 in 2025). This allows a spouse with lower or no compensation to take advantage of the tax savings offered by an IRA. The annual contribution limits apply to the combination of all your Traditional and Roth IRAs.
If you are age 50 or older, you may make an additional $1,000 "catch-up" contribution to your IRA.
Contribution timing
You may make regular (including catch-up) contributions at any time for a taxable year up to and including your federal income tax return due date, excluding extensions, for the taxable year. The due date for most taxpayers is April 15.
- Contribution dollars may be withdrawn at anytime, tax and penalty-tax free.
- Earnings on the account accumulate on a tax-deferred basis and can be withdrawn free from federal income taxes, if the withdrawal is a qualified distribution as defined below.
- The Saver's Credit may provide a tax credit for those who save for retirement. You may be able to take a credit of up to $1,000 – up to $2,000 if filing jointly. The credit applies to the first $2,000 contributed to a Traditional IRA, Roth IRA, SIMPLE IRA, or 401k account by reducing the amount of federal income tax you owe dollar for dollar. The credit ranges from 10% to 50% of your contributions and is based on your filing status, adjusted gross income, and tax liability. Special rules apply.
Visit the IRS website or talk to your tax advisor for more information.
- Contribution dollars can be withdrawn from the Roth IRA anytime, tax and penalty tax free.
- Earnings can be withdrawn tax and penalty tax free if this or another Roth IRA has been in existence for at least five years and the distribution is made because you:
- Have attained the age of 59½,
- Die,
- Become disabled, or
- Need to pay for the purchase or construction of your first home ($10,000 lifetime maximum).
- Distributions may be taken in specific amounts, as a lump sum or as a series of systematic payments.
Note: There are some qualified exceptions to the 10% tax penalty for traditional and Roth IRA distributions.
A conversion is a taxable movement of funds from a Traditional, SEP, or SIMPLE (after two years) IRA to a Roth IRA. A conversion may also include a rollover conversion from a Qualified Retirement Plan (QRP), including a 401k, 403b, 457b or profit-sharing plan to a Roth IRA. Amounts converted are not subject to the federal 10% tax penalty until withdrawal
You can also browse the Roth IRA Conversion most Frequently Asked Questions. It is important to note if you convert pre-tax retirement dollars to a Roth IRA you may owe income taxes. You should consult your tax advisor for specific guidance and advice.
In general, you have 60 days from the date you receive an IRA or retirement plan distributions to roll it over to another eligible plan or IRA.
You may make only one IRA tax-free rollover in a rolling twelve-month period, regardless of the number of IRAs you own. This includes Traditional, Roth, SEP and SIMPLE IRA's.
The following transactions are not subject to the one rollover per 12-month limitation:
- IRA to IRA transfers
- Rollovers made from or to an employer retirement plan (i.e. 401k to an IRA or IRA to a 401k)
- Conversions (i.e. funds from Traditional IRA moved directly or within 60 days to Roth IRA)
return to reference 1 Earnings may be taxed at your tax rate, and a 10% tax penalty for an early withdrawal of these earnings may apply.
For educational purposes only.
Neither State Farm® nor its agents provide tax or legal advice.