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What are the eligibility rules to contribute to a Roth IRA?

 To contribute to a Roth IRA, you must have earned income for the year. Earned income usually includes wages, salaries, tips, and self-employment income. Investment income, such as interest and dividends, does not count as earned income for IRA contribution purposes. If you are married and file a joint return, a non-working spouse may be able to contribute to a Roth IRA based on the working spouse’s income through what is sometimes called a spousal IRA strategy.

Eligibility also depends on your Modified Adjusted Gross Income (MAGI)  and tax filing status. The IRS sets annual income ranges that determine whether you can contribute the full amount, a reduced amount, or are not eligible for a direct contribution that year. These ranges are different for single filers, heads of household, and married couples filing jointly or separately. If your income is above the upper limit for your filing status, you typically cannot make a direct Roth IRA contribution. However, some individuals explore strategies such as the Backdoor Roth IRA, which uses Traditional IRA contributions and conversions.

Because income limits are adjusted periodically, it is important to review the limits for the current tax year or consult a tax professional before contributing. WealthRabbit can help you track contribution amounts, but you are responsible for confirming that your income falls within IRS eligibility ranges.