Each year, the IRS sets contribution limits for individual retirement accounts (IRAs). These limits may change annually, depending on cost of living adjustments.
2024 contribution limits
For 2024, the total maximum contributions you can make across all of your traditional (pre-tax) IRAs and Roth IRAs is $7,000. If you are over the age of 50, you are eligible to make an additional $1,000 catch-up contribution (or a total of $8,000 for the year).
However, if your annual taxable income is less than the IRS limit, you can only contribute up to your taxable compensation amount. For example, if your eligible compensation is only $4,000, your IRA contribution is limited to $4,000, regardless of the IRS limit.
Note that IRA limits are separate from 401(k) contribution limits, which also may change each year. However, if you are participating in a state mandate plan (e.g., CalSavers, Illinois Secure Choice), your contributions are being made to a Roth IRA and will count toward your annual IRA limit.
Am I eligible to contribute to an IRA?
Almost anyone who receives taxable earned income can contribute to a traditional IRA, although your income and participation in an employer-sponsored retirement plan will determine if you can deduct your contribution.
However, your ability to contribute to a Roth IRA depends on your modified adjusted gross income. You can review income limits for Roth and traditional IRAs here.
Can I use my spouse’s income toward the contribution limit?
If you have little or no taxable income, but you are married and file a joint tax return, your spouse’s eligible compensation can be used to meet the income requirement to contribute to an IRA on your behalf.
In this case, your combined compensation must be enough to cover both contributions to your IRA and your spouse’s IRA. For example, if each of you only had $5,000 in eligible W-2 compensation for a total of $10,000, the maximum you could put into IRAs would be a total of $10,000. However, if you had $5,000 in includable W-2 compensation and your spouse had $15,000, combined you would have a total of $20,000 of eligible compensation. Therefore, you could each max out your IRA annual contributions of $7,000 and jointly save $14,000 toward retirement (plus an additional $1,000 each if you were both 50 or older by the end of the year).