Roth IRA Contribution Limits
Like all retirement contribution plans, Roth IRAs have contributions limits. These limits are based on income limits. The Internal Revenue Service (IRA) limits contributions to all retirement accounts, including Roth IRAs. The contribution limits that are set for Roth IRAs are based on the assumption that an employee qualifies to contribute to a Roth under the IRS income limits.
Roth IRA Contribution Limits for Participants Under Age 50
Roth IRA participants who are under age 50 may contribute up to $5,500 in 2015. This limit applies to both Traditional and Roth IRAs. This amount is also the total that can be contributed each year across all IRA accounts that a participant may have with multiple providers.
Roth IRA Contribution Limits for Participants 50 Years or Older
If you are a Roth IRA participant over age 50, you may contribute up to $6,500. This contribution limit is for all Roth IRA plans a participant may have. However, the IRS will allow individuals 50 years or older to contribute an additional $1,000 as "catch up" contributions per year. This allowance is made to assist older individuals who are behind in their retirement saving.
Additional Roth IRA Contribution Options
Participants may contribute money to a Roth IRA from January 1 of the current tax year to April 15 of the following tax year. Note that with Roth IRAs, contributions are made with post-tax dollars. That means that you will pay tax today, but not have to pay tax again when you withdraw the funds during retirement.