The Short Answer: Income Limits Are the Main Barrier

You can open a Roth IRA if you have earned income and meet the income limits set by the IRS. The income limits change each year and depend on your filing status. If your income is above the limit for your situation, you cannot contribute to a Roth IRA that year, though you may still be able to open an account with zero dollars in it.

The IRS defines earned income as money you make from working — wages, salary, self-employment income, or taxable alimony. Investment income, Social Security, and retirement distributions do not count as earned income for Roth IRA purposes.

Key Takeaways

  • You must have earned income from work to open and fund a Roth IRA; investment income and Social Security do not may have access to.
  • Income limits vary by filing status and change yearly, so you need to check the current year's limit before you contribute.
  • If your income exceeds the limit, you cannot contribute that year, but you may still open an account for future years when your income is lower.
  • You can open a Roth IRA at any age as long as you have earned income, including children with part-time jobs.
  • A spouse with no earned income can open a spousal Roth IRA if the working spouse has enough income to cover both contributions.

Income Limits by Filing Status

The IRS sets different income limits depending on whether you file as single, married filing jointly, or married filing separately. For 2024, the limits are higher for married couples filing jointly than for single filers. The limits phase out over a range — you cannot contribute the full amount once your income enters that range, and you cannot contribute at all once you exceed it.

These limits change each year, usually increasing slightly. You should check the IRS website or your tax software for the current year before you contribute. If your income is close to the limit, calculate your modified adjusted gross income (MAGI) carefully, as this is what the IRS uses, not your straightforward gross income.

Age Requirements and Who Can Open an Account

There is no age requirement to open a Roth IRA. A child with earned income from a part-time job, modeling, or self-employment can open one. A parent or guardian typically manages the account until the child reaches the age of majority in their state.

You can open a Roth IRA at any point in your life as long as you have earned income that year. Retirees can still open one if they have earned income from consulting, part-time work, or self-employment. There is no upper age limit.

Spousal Roth IRAs for Non-Working Spouses

If you are married and file jointly, your spouse can open a Roth IRA even if they have no earned income, as long as you have enough earned income to cover both your contribution and theirs. This is called a spousal Roth IRA. Your combined income must still fall within the income limits.

The working spouse's income is what matters for the income limit calculation. Each spouse has their own separate account and their own contribution limit. You cannot combine contributions into one account.

What Happens If Your Income Is Too High

If your income exceeds the limit for your filing status, you cannot contribute to a Roth IRA that year. You can still open an account with zero dollars in it and wait for a year when your income is lower. Some people open accounts early and contribute in years when they may have access to.

If you have already contributed and then find out your income was too high, you can withdraw the excess contribution and any earnings on it before your tax return important date. This is called a recharacterization. You will owe taxes on the earnings portion if you do not withdraw by the important date.

Citizenship and Residency Requirements

You must be a U.S. citizen or resident alien to open a Roth IRA. The IRS requires a valid Social Security number or Individual Taxpayer Identification Number (ITIN). Non-residents and non-citizens cannot open Roth IRAs, though they may have other retirement savings options depending on their visa status.

If you are a resident alien, you can open a Roth IRA as long as you have earned income and meet the income limits. Your status is determined by IRS rules, not immigration status alone.

Where to Open a Roth IRA

You can open a Roth IRA at a bank, credit union, brokerage firm, or investment company. Each institution sets its own minimum opening balance, which may be zero or several hundred dollars. You will need to provide your Social Security number, date of birth, and address.

The institution will ask you to choose how to invest the money — in stocks, bonds, mutual funds, or other options depending on what they offer. You do not have to fund the account when ready; you can open it and contribute later in the year or in future years.

Frequently Asked Questions

Can I open a Roth IRA if I am unemployed?

No, you must have earned income from work. Unemployment benefits, disability payments, and investment income do not count. If you have a spouse with earned income, you may be able to open a spousal Roth IRA instead.

What if my income changes during the year?

Use your income for the entire year to determine whether you can contribute. If you expect your income to be below the limit by year-end, you can contribute based on that projection. If you contribute and your final income ends up above the limit, you will need to withdraw the excess before your tax important date.

Can I open a Roth IRA for my child?

Yes, if your child has earned income from a job or self-employment. You open and manage the account as the custodian until they reach the age of majority. The contribution limit is based on their earned income, not yours.

Do I need to have the money before I open the account?

No. You can open an account with zero dollars and fund it later. Many people open accounts early in the year and contribute throughout the year or even wait until the tax important date the following year to contribute for the prior year.

What if I have both a 401(k) and want a Roth IRA?

You can have both. The income limits for Roth IRAs explore regardless of whether you have a 401(k). However, if you are covered by a workplace retirement plan, your ability to deduct traditional IRA contributions may be limited — this does not affect Roth IRAs.