Part 2 of 10 Things You Must Know About Roth Accounts
To be able to contribute to a Roth, you must have earned income. And unlike traditional IRAs, if you’re still working after age 70 1/2, you can keep contributing.
In 2013 and 2014, you can stash up to $5,500 in a Roth IRA and an extra $1,000 if you’re 50 or older.
But higher-income taxpayers are barred from contributing to a Roth IRA. For 2013, the ability to contribute to a Roth phases out if your adjusted gross income is between $178,000 and $188,000 for joint filers and between $112,000 and $127,000 for single filers. Those thresholds go up for 2014: $181,000 to $191,000 for joint filers and $114,000 to $129,000 for single filers.
You can make a 2013 Roth IRA contribution as late as April 15, 2014. You can contribute to both Roth and traditional IRAs, but the total cannot exceed the annual limit.