How to Calculate Roth IRA Contribution Limits
A Roth IRA lets you invest after-tax dollars that grow tax-free and are withdrawn tax-free in retirement. But contribution eligibility phases out at higher income levels, making it important to calculate how much you can contribute each year.
2024 Contribution Limits
- Base limit: $7,000/year (or $8,000 if age 50+)
- You can contribute up to the limit or your earned income for the year, whichever is less
Income Phase-Out Ranges (2024)
| Filing Status | Phase-Out Begins | Phase-Out Ends |
|---|---|---|
| Single / Head of Household | $146,000 | $161,000 |
| Married Filing Jointly | $230,000 | $240,000 |
| Married Filing Separately | $0 | $10,000 |
Calculating Your Reduced Contribution
If your MAGI falls within the phase-out range:
Reduced Limit = Base Limit × (1 − (MAGI − Phase-Out Start) / Phase-Out Range Width)
Then round down to the nearest $10, with a minimum of $200 (or $0 if fully phased out).
Example: Single filer, MAGI = $153,000 in 2024.
- Phase-out start: $146,000
- Excess: $153,000 − $146,000 = $7,000
- Phase-out range: $161,000 − $146,000 = $15,000
- Reduction fraction: $7,000 / $15,000 = 0.4667
- Reduction: $7,000 × 0.4667 = $3,267
- Allowed contribution: $7,000 − $3,267 = $3,733 (round to $3,730)
Backdoor Roth IRA
If you're above the income limit entirely, you may be able to use the "backdoor Roth" strategy: make a non-deductible Traditional IRA contribution, then convert it to a Roth. Consult a tax professional before attempting this.
Use our Roth IRA calculator to find your exact contribution limit based on your income.