IRA Center

An Individual Retirement Account (IRA) provides eligible investors a tax-advantaged way to save for retirement. Whether you are looking to better understand the basics of IRAs, compare IRAs side by side, try a calculator or find out how to open an IRA, we are here to help.

Is your 401(k) enough to get you through retirement? An IRA can supplement your retirement savings.

The IRS sets eligibility requirements and contribution limits each year for IRAs.

Eligibility

Traditional IRA

  • You must be under the age of 70½ on December 31.
  • You or your spouse (if one of you are not working and you file a joint return) must have earned income during the year.
  • No Modified Adjusted Gross Income (MAGI)* limit for contributions; MAGI limits do apply to tax deductibility.

Roth IRA

  • You must have earned income.
  • You or your spouse (if one of you are not working and you file a joint return) must have earned income during the year.
  • Modified Adjusted Gross Income (MAGI)* Limits: $181,000 for couples, $114,000 for singles for 2014; $183,000 for couples, $116,000 for singles for 2015.
  • Eligibility phases out at $191,000 for couples, $129,000 for singles for 2014; $193,000 for couples, $131,000 for singles for 2015.

*Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income (AGI) with standard deductions included.

Contribution Limits

Annual contribution limits are listed below. You can contribute an additional amount to your IRA each year if you are age 50 and older. These are called catch-up contributions. If you are married and your spouse is not working, you may also make a spousal contribution in to an IRA under your spouse's Social Security number.

Review Traditional IRA and Roth IRA Contribution Limits

Filing Status 2014 2015
Single $5,500 $5,500
Married Filing Jointly $11,000 $11,000


Catch-Up Contributions (age 50 or older):

Filing Status 2014 2015
Single $1,000 $1,000
Married Filing Jointly $2,000 $2,000


Contribution Limits for Other Retirement Plans:

The Pension Protection Act of 2006 makes permanent higher contribution limits for IRAs and employer-sponsored retirement plans. The limits have been in effect since 2001.

If you are at least 50 years old before the end of the year, you are allowed to make additional "Catch-Up" contributions as you approach retirement

Please refer to IRS Publication 560 and 590 for more information about IRA contribution deadlines and limits.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.