At what income can you not contribute to an ira?

If lower, your taxable compensation for the year. There are no income limits for traditional IRAS1, but there are income limits for tax-deductible contributions. No, there is no maximum income limit for a traditional IRA. Anyone can contribute to a traditional IRA.

While a Roth IRA has a strict income limit and people with incomes above it can't contribute at all, that rule doesn't apply to a traditional IRA. Keep in mind that income limits apply to traditional IRAs only if you or your spouse have a retirement plan at work. However, if you or your spouse are covered by an employment retirement plan, there are income limits for making tax-deductible contributions to traditional IRAs. You may still want to make a non-deductible contribution, either because you prefer to allow your investments to grow tax-free and defer income taxes or because you want to make a clandestine contribution to the Roth IRA by contributing to your traditional IRA and then converting it into a Roth account.

However, keep in mind that your eligibility to contribute to a Roth IRA depends on your income level. If your spouse is covered by a plan at work, there's also a limit to the amount of tax-deductible contributions you can make to your traditional IRA each year. If you (and your spouse, if you're married) aren't covered by an employer-sponsored retirement plan, you can deduct your full contribution from your taxes. The ability to make non-deductible contributions regardless of income level makes traditional IRAs a valuable retirement savings account that can be converted into a clandestine Roth IRA.

While there is no general limit for contributing to a traditional IRA, there are income limits for tax-deductible contributions. If you've contributed too much to your IRA, it might be a good idea to talk to a tax professional or financial advisor about how to establish better ways to manage your contributions. Minors can contribute to an IRA based only on their own earned income limits and not those of their parents. If you don't qualify to make a deductible contribution, you can still invest money in a traditional IRA.

The answer to the question about deductibility is based on your income and whether you or your spouse are covered by an employer-sponsored retirement plan, such as a 401 (k) plan. If neither you nor your spouse (if any) participate in a work plan, your traditional IRA contribution is always tax-deductible, regardless of your income. If you (and your spouse, if you are married) are covered by an employer-sponsored retirement plan, the traditional IRA tax deduction may be limited based on your modified adjusted gross income (MAGI), which is your income, before subtracting the interest tax deduction on student loans and other tax deductions. If you exceed your income limits, you won't be able to contribute pre-tax funds to your account, but you'll still be able to make non-deductible contributions and benefit from tax-free growth.