Earned income is a requirement to contribute to a traditional IRA, and your annual contributions to an IRA cannot exceed what you earned that year. The Security Act eliminated the age limit at which a person can contribute to an IRA. As long as you're still working, there's no age limit to be able to contribute to a traditional IRA. With Roth IRAs, you can contribute at any age, as long as your earned income is within the allowable income limits.
If you're not sure how much you can contribute, use our calculator. It depends on what type of IRA it is. Just about anyone can contribute to a traditional IRA, as long as you (or your spouse) receive taxable income and are under 70 and a half years old. However, your contributions are tax-deductible only if you meet certain requirements.
For more information on those requirements, see Who can contribute to a traditional IRA? Yes, a person under 18 can contribute to a Roth IRA or a traditional IRA as long as they meet earned income requirements and don't earn above income limits. If you make too much money, you may still be able to contribute to a Roth IRA through a strategy called a clandestine Roth IRA. And you can deduct your contributions in full if you and your spouse don't have a 401 (k) or other retirement plan at work. All deductible contributions and earnings that you withdraw or that are distributed from your traditional IRA are taxable.
The savings credit is available to individuals, heads of household and joint filers who contribute to an IRA, 401 (k) or any other qualifying retirement account whose adjusted gross income is within certain parameters. Roth IRA contributions are never tax-deductible, and you must meet certain income requirements in order to make contributions.