Merrill A Bank of America Company Merrill A Bank of America Company Open Menu bar Schedule an Helpful resources Related questions Help RETIREMENT OCTOBER 15, 2021 Answered by Debra Greenberg Yes, you can, but only if you have compensation income. Roth IRAs were designed to help people save for retirement with the advantage of tax-free growth. So they're really most useful as a way to invest for growth in the years before youretire. For purposes of the annual limit, "compensation" includes wages from employment or earned income from self-employment. No. Roth IRAs have no age limit for contributing. You just need to have compensation equal to or greater than your contribution. Also, be aware that your eligibility to contribute is phased out, based on modified adjusted gross income (MAGI) ranges that are published annually and correspond to your federal tax filing status. If your MAGI is Generally, the contribution limit is $6,000 per year ($7,000 if you're age 50 or older during the calendar year), or if less, your taxable compensation for the year but the ability to make Roth IRA contributions is subject to income limits. Roth IRAs were designed as a way to help people save money for retirement, because qualified distributions of the gains on the investments in the account would be federally tax-free later on. Anyone earning above a certain threshold faces limits on how much they can contribute. The amount is based on your MAGI and federal tax filing status. Note that this annual limit applies to your total contributions to both traditional and Roth IRAs for that year. To learn more, refer to the Annual Limits Guide (PDF). For purposes of the annual limit, "compensation" includes wages from employment or earned income from self-employment. Income from Social Security, pensions or investments doesn't count. But earnings from a part-time or consulting job, for instance, would be included. Check with your tax advisor to see if your income would affect your eligibility to contribute to a RothIRA. Generally, if you're not earning any income, you can't contribute to either a traditional or a Roth IRA. However, in some cases, married couples filing jointly may be able to make IRA contributions based on the taxable compensation reported on their jointreturn. As long as your spouse earns enough to cover your contribution, and you file your tax return jointly, he or she could contribute up to the maximum allowable limit for you. So, for example, if you're both 50 or older during the calendar year, as long as your spouse has $14,000 in compensation and you and your spouse do not exceed the MAGI limits, your spouse could contribute up to $7,000 annually to a Roth IRA in his or her name, and up to $7,000 annually to a Roth IRA in your name. Solution Ready to get started? Call us 888.637.3343888.637.3343 Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. 3856135 Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp"). Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp. Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Privacy|Security|Advertising practicesAdvertising Practices| © 2023 Bank of America Corporation. All rights reserved. 4326521
appointmentwith MerrillCall Merrill at866.460.1282
Director, Retirement & Personal Wealth Solutions, Bank of America Is there an age limit for contributing?
What are the contribution limits?
How do spousal contributions to a Roth IRAwork?
What's Next
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
Can You Contribute to a Roth IRA After Retirement? (2024)
Table of Contents
Is there an age limit for contributing?
What are the contribution limits?
How do spousal contributions to a Roth IRAwork?
Related Questions
What's Next
Related Questions
Top Articles
10 best cuisines in the world | CNN
What is a STEM Degree
Comfort, Style, Practicality, Power: The Best Luxury SUVs Of 2024
Top 10 best luxury SUVs 2024 | Autocar
Self-storage units - Over 20 locations in Stockholm
Self Storage Stockholm ✅ - Boka prisvärda förråd online
GUI Chat Application In Python Tkinter - CopyAssignment
The Unsent Project Reveals Moving Text Messages People Never Sent
Sam Club Careers Apply Online
Mystikal Menace Dire Desires
Latest Posts
Understanding Quiet Title Action Lawsuits in California
The 3 Major Types of Industries – Primary, Secondary & Tertiary
Article information
Author: Dan Stracke
Last Updated:
Views: 6028
Rating: 4.2 / 5 (63 voted)
Reviews: 86% of readers found this page helpful
Author information
Name: Dan Stracke
Birthday: 1992-08-25
Address: 2253 Brown Springs, East Alla, OH 38634-0309
Phone: +398735162064
Job: Investor Government Associate
Hobby: Shopping, LARPing, Scrapbooking, Surfing, Slacklining, Dance, Glassblowing
Introduction: My name is Dan Stracke, I am a homely, gleaming, glamorous, inquisitive, homely, gorgeous, light person who loves writing and wants to share my knowledge and understanding with you.