How much am I able to contribute to an IRA each year?

The maximum allowable contribution to your IRAs (including Traditional and Roth IRAs) for both 2020 and 2021 is the lesser of:

  • $6,000, OR
  • 100% of your U.S. earned taxable compensation or earnings from self-employment. 
  • If you are age 50 or older you can contribute an additional $1,000.00. 

If your spouse is not employed or earns less than you earn and you file a joint tax return, your spouse may also contribute to an IRA. 

The maximum contribution to your spouse's IRA for each tax year (2020 and 2021) is $6,000 or the combined compensation of both spouses, minus the dollar amount of the IRA contribution made by the compensated spouse. If you are age 50 or older you can contribute an additional $1,000. The total combined contribution to each individual's IRA cannot exceed these limits.

Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. The same general contribution limit applies to both Roth and Traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income. For more information on IRA contribution limits please visit the IRS website.

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