Roth individual retirement accounts (IRAs) allow you to contribute after-tax dollars to an account with the ability to take tax-free withdrawals at retirement age, if you meet certain eligibility requirements. You can make catch-up contributions to an IRA and a Roth IRA if you meet age and income eligibility requirements.
Contribution Limits
You can contribute up to $5,500 to an IRA account in 2015 and 2016. Catch-up contributions assist those nearing retirement who may be behind in their retirement planning or those who simply wish to save more in the tax-advantaged account. If you are age 50 or older, you can contribute an additional $1,000 to an IRA annually, bringing your total contribution to $6,500. Catch-up contributions are treated the same as regular IRA contributions; you must make them by the tax filing deadline (April 15, in most cases) to be earmarked for the prior year.
Income Limits
Your Roth IRA contributions may be limited depending on your tax filing status and adjusted gross income (AGI) level.
If you are a single filer with an AGI up to $116,000, you can make a full Roth IRA contribution. If you have an AGI over $131,000, you are ineligible. If your AGI falls between those two levels, you can make a partial contribution and can calculate how much you can contribute on the Internal Revenue Service (IRS) website. Similarly, those who are married filing joint returns with an AGI up to $183,000 can make a full Roth IRA contribution, while those with an AGI over $193,000 are ineligible.