ira contribution age limit - senior couple looking at computer

Is There an Age Limit for Making IRA Contributions?

Luckily, you’re never too old or too young to contribute to your individual retirement account (IRA). Whether you’re thinking about getting an early start on setting up an IRA or you’re a few years away from retirement, it’s never too late or too early to start saving. In the past, there was an age limit for traditional IRAs, but as of 2020, that is no longer the case. 

However, you must have taxable income in an amount that is equal to or greater than the amount of your contribution in order to be eligible for IRA contributions. You can even set up a Roth IRA for a minor as long as they have qualified earned income, because there is no age limit for contributions.

Types of IRAs

Even though there is no minimum or maximum age limit for making IRA contributions, there are many other factors that can affect your eligibility. These restrictions depend on the type of IRA you set up—traditional and Roth IRAs are the main types, but there are also SEP and Simple IRAs.  

Traditional IRA

A traditional IRA allows you to save your earned income before taxes. You won’t have to pay any government taxes on the funds until you make a withdrawal. There is no age limit for making contributions, but there is an age limit for withdrawing funds. You can’t start withdrawing money until the age of 59.5, and you must start taking the required minimum distributions (RMD) starting at age 73. 

Roth IRA

With a Roth IRA, the money placed into the account gets taxed up front, so you can make tax-free withdrawals later on. There are no age restrictions and no RMDs to worry about during your lifetime, and you can make contributions for as long as you or your spouse earns income. The beneficiaries of your Roth IRA, however, may need to take the required minimum distributions.


self-employed individuals, such as small business owners, freelancers, and independent contractors can create Simplified Employee Pension (SEP) IRAs. Just like a traditional IRA, there is no age limit, but you must start taking the required minimum distributions at age 73. 


A Savings Incentive Match Plan for Employees (SIMPLE) IRA is for small businesses with 100 or fewer employees. Both the employer and employees can make contributions to the account without any age restrictions. In fact, the employer must make matching or non-elective contributions. However, the employee needs to begin taking RMDS at age 73. 

IRA Contribution Amount Limits

You might not have to worry about age restrictions with IRAs but there are significant contribution limits for all four types. For traditional and Roth IRAS, the limit is $6,500 in 2023. But Americans aged 50 or older can contribute an additional $1,000 in catch-up contributions. The limit for SEP IRA contributions in 2023 is either $66,000 or 25% of their compensation. 

And although you can make contributions to a SIMPLE IRA at any age, the amount you can contribute does depend on age. Employees under 50 can contribute up to $15,500 in 2023, and employees who are 50 or older can make catch-up contributions of up to $3,500. 

Arizona Estate Planning Lawyer

If you decide to set up an IRA, don’t forget to include it in your estate plan. At Phelps LaClair, we can help you create a successful estate plan that ensures all of your assets end up in the right hands at the right time. We’ve been helping Arizona residents protect their IRAs and other assets with our expert estate planning services for over 40 years. Call us at 480-892-2488 today to schedule a no-obligation consultation. 

Images used under creative commons license – commercial use (2/14/2023). Photo by Tima Miroshnichenko on Pexels

Next webinar
starting soon
Free Webinar