Am I Eligible?
2024 Roth ira eligiblity checklist
Check Your Income
- Single Filers: Your Modified Adjusted
Gross Income (MAGI) should be less
than $161,000. - Married Filing Jointly: Your combined MAGI should be less than $240,000.
- Income Phase-Out Range: Be aware
of the phase-out range where your
contribution limit starts to decrease. For singles, it’s $161,000 to $176,000; for married filing jointly, it’s $240,000 to $250,000.
Age Requirement
There is no age limit for contributing to a
Roth IRA.
Earned Income
Ensure you have earned income (like
wages, salaries, or self-employment
income). Investment income doesn’t qualify.
Contribution Limits
Know the contribution limits: Up to $7,000 if you are under 50, and $8,000 if you are 50 or older.
Spousal IRA
If you don't have an income but your spouse does, you might still be eligible to contribute to a Roth IRA using your spouse's earnings. This option allows married couples filing jointly to fund separate IRAs for each spouse, up to the standard contribution limits, based on the working spouse's income.
Existing IRA Accounts
The total amount you contribute to all your IRAs (both Roth and Traditional) should not exceed the annual limit.
Backdoor Roth IRA (For High-Income Earners)
- If your income is above the limit for
direct contributions, consider if the
backdoor Roth IRA strategy
(converting from a Traditional IRA to
a Roth IRA) is suitable for you. - You can also convert your 401(k) into a Roth IRA.
No Income
You won’t be able to contribute for any
years where you don’t have taxable
income.
Consult a Financial Advisor
If you’re unsure about any of these points, especially regarding income calculations or the backdoor Roth IRA strategy, consider consulting a financial advisor.