Any IRA or Roth IRA account you choose to invest in is subject to maximum contribution limits imposed by the Federal Government. Here is a table summarizing the contribution limits imposed:
Roth IRA Contribution Limits Table
| Year | 49 Years & Less | 50 Years & More |
| 2013 | $5500 | $6500 |
| 2014 | $5500 | $6500 |
| 2015 | $5500 | $6500 |
| 2016 | $5500 | $6500 |
| 2017 | $5500 | $6500 |
| 2018 | $5500 | $6500 |
| 2019 | $6000 | $7000 |
| 2020 | $6000 | $7000 |
Contributions towards your Roth IRA account do NOT have to be made in the form of a lump sum payment. For example in the year 2020, you could contribute $6000 / 12 months = $500 per month for 12 months. Or you could contribute $6000 / 4 = $1500 every 3 months. Or you could contribute $3000 every 6 months. You get the idea?
However, note that the Roth IRA contribution maximums cannot be carried front or back from year to year. For example, if you contribute only $5000 in the year 2018 (when the maximum was $5500), you CANNOT contribute $6500 in 2019 ($500 from the previous year and $6000 maximum of the current year). The maximum contribution limits cannot be carried over to the next year.
Therefore, the general rule of thumb is, you either contribute $5500 in the year 2018, and if you fail to do so, too bad, you cannot make up for it in the year 2019!
Roth IRA Contributions Rules
1) Income Limitations: In order to be eligible to contribute towards a Roth IRA account, you must make money in the form of compensation income example salaries, tips, bonuses, professional consulting fees, etc.
2) Age: There are no age restrictions when contributing towards a Roth IRA.
3) Spouse Roth IRA: You are allowed to make Roth IRA contributions on behalf of your spouse, only if you meet the income requirements.
4) Time Factor: As explained above, contributions towards a Roth IRA can be made at anytime during the year. However, this year’s contributions cannot be rolled over to the following years.
