Get Pumped: 2024 Roth IRA Income Ranges Have Increased

If you're searching for reasons to be excited about 2024, here's one to add to your list: Higher Roth IRA income limits. Last month, the IRS released the 2024 contribution and income limits for individual retirement accounts, and they are better than ever. This means you can earn more money and still qualify to stash money away in a Roth IRA.

So if you are thinking about contributing to a Roth IRA in 2024, we've jotted down a few things you need to know about the limits and requirements.

Person on couch looking at computer and cheering.

Image source: Getty Images.

Let's start with the new Roth IRA contribution limits

For 2024, if you are under 50, you can contribute up to $7,000 in your Roth IRA. This is up from $6,500 in 2023. If you are 50 or older, you can contribute up to $8,000 (up from $7,500 in 2023). If you are 50 or older, you also get the benefit of a $1,000 catch-up contribution. However, you can't contribute more than you've earned for the year.

Let's say you are 75 years old and earn $5,000 from your part-time job. You won't be able to contribute the max amount to an IRA because you only earned $5,000 for the year. Your 2024 contribution would be limited to your earnings.

2024 Roth IRA

Contribution Limits

2023 Roth IRA

Contribution Limits

Under 50



50 or over



Data: IRS. Chart by author.

The 2024 Roth IRA income limits are higher

Now is a good time to organize your finances and start planning for 2024. Since the Roth IRA income limits are increasing in 2024, you may have a shot at living the Roth IRA dream if you're in the early stages of the six-figure club. This is a big deal because the Roth IRA allows you to contribute after-tax dollars in exchange for tax-free income in retirement.

Suppose your tax filing status is single and you are 40 years old in 2024. The income limit to max out your Roth IRA contribution in 2024 is $146,000, up from $138,000 in 2023. Keep in mind that the income number you need to pay attention to is your modified adjusted gross income (MAGI). Your MAGI will determine whether you can make direct contributions to a Roth IRA and whether you can stash away the full amount in 2024.

So if your MAGI was $140,000 in 2023, you wouldn't be able to make a full contribution to a Roth IRA. But if your income remains the same in 2024, you'll be able to make a full contribution thanks to the higher income limits.

When your income tips over $146,000, you can make reduced contributions to a Roth IRA until your income jumps over $161,000. After that, you won't be eligible to make any direct contributions to a Roth IRA in 2024 if your tax filing status is single or head of household.

Take a look at the Roth IRA income limits for 2024 to see if you might have a chance to make direct contributions to the account.

2024 Tax Filing Status

Income Limit For a Full Roth IRA Contribution

Roth Contribution Phases Out Entirely For Income Above

Single and head of household



Married filing jointly



Data source: IRS.

Think about your 2024 income goals

Your 2024 income will determine if you are a candidate to make direct contributions to a Roth IRA.

If you earn a salary or have a good idea of what your income will look like in 2024, you can get the ball rolling on Roth IRA contributions on Jan. 1, 2024 if your income falls within the range. But if you're expecting a big bonus or significant spike in income that may push your income over the limits, you might want to hang tight before you dump money into a Roth IRA.

No matter where you stand, it's still a good time to plan and start saving money toward your retirement goals. Even if you earn too much to contribute directly to a Roth IRA in 2024, you can still use a backdoor Roth IRA to gain access to the account. But planning ahead will make sure you're in good shape to maximize your Roth IRA contributions and meet any other retirement goals you want to scratch off your list.

10 stocks we like better than Walmart

When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of 12/18/2023

The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.