- The maximum annual contribution limit, set by the Internal Revenue Service, adjusts annually for inflation. As of 2010, the maximum contribution equals $5,000 or your earned income total for the year, whichever is smaller. If you are 50 or older, the contribution limit increases to $6,000.
- If your modified adjusted gross income (MAGI) exceeds the annual limits, you cannot contribute to a Roth IRA. If you fall in the phase-out range, your contribution will decrease based on how close you are to the absolute contribution limit. For example, for 2010 if you are single, your contribution limit decreases if your MAGI falls between $105,000 and $120,000. Singles with MAGIs in excess of $120,000 cannot contribute to a Roth IRA.
- The IRS does not limit the amount of money that can be held in a Roth IRA, just the amount that can be contributed per year.