If you have a Roth IRA, or if you're preparing to open one, it's important to review Roth IRA income limits. Federal law prohibits individuals who make more than the income limit from contributing fully to a Roth IRA. Knowing the current Roth IRA income limits can help you decide if a Roth IRA is right for you, or if you may need to explore other retirement savings options. Be sure to check with a financial advisor before making big changes to your retirement accounts.
What Are Roth IRA Limits?
The IRS determines Roth IRA income limits. Income limits are based only on an individual's compensation income: wages, salaries, tips, bonuses and self-employment income. IRS.gov has a table to help you determine the limits that apply to your own situation.
Other Options: Traditional IRAs and CDs
If your income exceeds Roth IRA income limits, you may want to consider other options, such as traditional IRAs or longer-term certificates of deposit (CDs). Traditional IRAs do not have income limits. However, there are maximum contribution limits for traditional IRAs. Check IRS.gov for current information on contribution limits. Ally Bank offers retirement products for both Roth and traditional IRAs that can help you safeguard your retirement savings. You can learn more about our products, including our IRA High Yield CD and IRA Online Savings Account by visiting AllyBank.com. Longer-term CDs might be another option worth considering. Generally considered low-risk accounts, CDs pay interest on your deposit and can help you grow money for retirement. Typically, the longer the CD's term, the higher its interest rate. If you likely will not need access to your money for a few years, a 3-year or 5-year CD could be a good way to get a great rate and boost your savings.
At Ally Bank, our CDs have rates that are consistently among the most competitive according to rates published by Bankrate. And of course, as with our IRA products, your funds in Ally Bank CDs are FDIC-insured up to the maximum amount allowed by law.
Learn more about which IRA product might be right for you at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, member FDIC