What is a Roth IRA Contribution?

When you contribute to a Roth IRA, you put in after-tax dollars, meaning you’ve already paid taxes on the money. In return, your contributions and earnings grow tax-free, and withdrawals in retirement are also tax-free.

Contribution Rules for Roth IRAs

The IRS sets specific guidelines each year. For 2025:

  • Contribution Limits: You can contribute up to $7,000 per year ($8,000 if age 50 or older).

  • Income Limits: Contributions phase out once your income passes certain thresholds.

  • Deadline: Contributions for each year must be made by the following year’s tax filing deadline (usually April 15).

Roth Contributions vs. Roth Conversions

  • Contributions: Add new after-tax money directly into a Roth IRA (limited by annual caps and income rules).

  • Conversions: Move existing pre-tax retirement money into a Roth IRA (no contribution limits, but you’ll owe taxes on the conversion).

Many savers use both strategies: contributing what they can each year while also strategically converting pre-tax dollars.