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Are there income limits for Traditional IRA contributions?

Anyone with earned income can contribute to a Traditional IRA regardless of their income level. There is no upper income limit on your ability to contribute to the account.

However, your income does affect whether your contribution is tax-deductible. The IRS sets annual income ranges based on your filing status and whether you or your spouse participates in an employer retirement plan. These ranges determine whether you can deduct:

• the full contribution,
• a partial amount, or
• None of your contribution.

Even if your income is too high to deduct the contribution, you can still make a nondeductible contribution, and it will grow tax-deferred. This can be useful for individuals who want to increase their long-term retirement savings regardless of deduction eligibility.