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As you start making contributions to your Individual Retirement Account (IRA), be aware of potential restrictions related to amounts, deadlines, income and ages. These restrictions and limitations differ based on the type of IRA plan you have and are important to keep in mind as you build your savings. Don't sell yourself short on retirement savings. Start with the smallest contribution you can afford and build from there.

You can contribute up to $6,000 to Traditional and Roth IRAs, provided you're under age 50 and you've earned wages equal to that amount. If you're age 50 and older, you can contribute up to $7,000. For Simplified Employee Pension (SEP) IRAs, you can contribute 25 percent of your annual compensation, up to $61,000, regardless of age. If you contribute to more than one type of IRA, the combined total must be below the limit.

Contribution Amount

Under 50 Age 50+
Traditional IRA & Roth IRA1 $6,000 $7,000
SEP IRA 25% of annual compensation2

Contribution Deadline

You have until Tax Day of the current year to make contributions for the previous year. As an example, for 2021 IRA contributions, you could have contributed anytime during 2021 and up until the tax deadline on April 18, 2022.

Traditional and SEP IRAs

To contribute to a Traditional or SEP IRA, you must have earned income and be younger than 72 in that tax year. Earned income includes wages, salary, tips, bonuses, commissions and self-employment income; it excludes investments and pensions. If you're a non-earning spouse under the age of 72 who files a joint tax return with a working spouse, you also are eligible to contribute.

Depending on your income, you could be eligible to take a tax deduction on the amount you contribute to your Traditional or SEP IRA.

Income Limits for Tax Deductions3

Income for Married Filing Jointly Income for Single Filer Tax Deductability
$109K or less $68K or less 100% tax-deductible
$109K-$129K $68K-$78K A portion is tax-deductible
$129K or more $78K or more Not tax-deductible

Roth IRA

To contribute to a Roth IRA, your earned income must be below or within the modified adjusted gross income (MAGI) limits. Unlike the Traditional IRA, there's no age restriction for contributing.

MAGI Roth Contribution Limits

Income for Married Filing Jointly Income for Single Filer
$214K $144K


1Maximum contribution listed in total combined amount allowed for Traditional and Roth.

2Not to exceed $61,000.

3If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.

This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.