--- title: IRA Age Limitations | Contribution Limits & Exception to IRA Limits description: Learn everything you need to know about the age limitations for IRA contributions, as well as the contribution limits and exceptions to those limits. image: https://www.carboncollectiveinvesting.com/hubfs/IRA_Age_Limitations_-_FI.png --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo.53b28bee.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** IRA Age Limitations # IRA Age Limitations ![](https://www.carboncollectiveinvesting.com/hubfs/Brooke%20Tomasetti.png) Written by Brooke Tomasetti | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents ## **Understanding IRA Age Limitations** As of 2020, the maximum age limit to be able to contribute to a traditional IRA was 70 1/2.  However, with the establishment of the [SECURE Act](https://www.congress.gov/bill/116th-congress/house-bill/1994/text), the contribution has no maximum age limitations beyond Jan 2020.  You can contribute if you have enough taxable compensation to support the contribution amount. This applies to both traditional and Roth IRAs. ## **Contribution Limits for IRAs** The 2023 contribution limit is $6,500 for both traditional and Roth IRAs. This is an increase from the 2022 limit of $6,000. [![Set up an IRA in minutes.](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/20345524/ff4ef020-b233-413e-a393-18ece0375c33.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/20345524/ff4ef020-b233-413e-a393-18ece0375c33) An additional $1,000 in catch-up contributions can be contributed by Americans aged fifty or older. Those close to retirement can set aside a bit more since the IRS imposes this. For 2022, employers can contribute to Simplified Employee Pension (SEP) IRAs either 25% of an employee's compensation or $61,000, whichever is lesser For 2023, employers can contribute 25% of an employee's salary or $66,000, whichever is lower. The 2022 contribution limit for Savings Incentive Match Plan for Employees (SIMPLE) IRAs is $14,000 for employees under the age of 50 and for employees above 50 is $17,000. For 2022, the limit for a SIMPLE IRA is $15,500 and $19,000, respectively.  ## **Age Limits for IRA Contributions** Although there are no age limits for IRA contributions, there are still a few considerations to make for each of these accounts. ### **Traditional IRAs** Contributing to a traditional IRA is now applicable at any age. Previously, contributions at age 70 1/2 have been stopped by the previous laws.  At age 73, the required minimum distribution (RMD) rules still apply but depends on where you were born ### **Roth IRAs** There is also no age limit for Roth IRA contributions. You can continue to make contributions regularly as long as you or your spouse earns income.  Additionally, no RMDs are applied with Roth accounts, but Roth IRA beneficiaries must take RMDs to avoid penalties. ### **SEP IRAs** No age limit is present in Simplified Employee Pension (SEP) IRAs. No matter how old you are, employers can contribute to your plan.  However, at age 73, you have to start taking RMDs depending on the year you were born. ### **SIMPLE IRAs** This type of IRA has no age limit either. Regardless of age, employers must continue making matching or non-elective contributions.  However, at age 73, you still need to take RMDs depending on your birthday. ![Age_Limits_for_IRA_Contributions-1](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Age_Limits_for_IRA_Contributions-1.png?width=1920&height=1081&name=Age_Limits_for_IRA_Contributions-1.png) ## **An Exception to IRA Limits** There are exemptions from the rules for IRA contributions. Here are below: ### **Age** Contributions are no longer restricted by age. Starting by the year 2020, anyone with an earned income can make contributions to either of the IRA types - traditional or Roth IRAs. ### **Non-working Spouses ** Spouses who are non-working and without income may contribute to an IRA. You can open up an IRA in your name and make contributions through a spousal IRA if you don't have taxable compensation.  However, file a joint return with a spouse who earns income. For both spouses, the combined IRA contributions limit is less than $13,000 per year of the total amount earned this year.  The federal limit increases to $14,000 if one of you is 50 or older, and it is $15,000 annually if both of you are. ## **Bottom Line** The contribution limit for IRAs has not changed in recent years.  The age limit to make contributions was previously 70 ½, but it is now removed entirely.  Depending on the type of IRA you have, there are still a few things to consider, but otherwise, anyone at any age can contribute. ## **FAQs** ### 1. How much can I contribute to my IRA? The contribution limit is $6000 for 2022. Then, you can contribute up to $6,500 to your IRA for 2023. If you're 50 or older, you can contribute an additional $1000 in catch-up contributions. ### 2. What happens if you contribute too much to an IRA? If you contribute more than the limit, you'll be subject to a six percent excise tax on the excess contributions. You can prevent this tax by withdrawing the excess contributions before your tax return is due. You may also be able to avoid the excise tax if you file an amended return. ### 3. Can I withdraw money from my IRA before I'm 59 ½? You can withdraw money from your IRA before you're 59 ½, but you'll be subject to a ten percent early withdrawal penalty. There are a few exceptions to the early-withdrawal penalty, such as using the money to pay for qualified higher education or certain medical expenses. ### 4. When do I have to start taking distributions from my IRA? You must take distributions from your IRA when you reach age 73. However, there is no age limit for Roth IRAs, and you're not required to take distributions from a Roth IRA. ### 5. How much will I need to pay in taxes on my IRA distributions? The amount of taxes you'll pay on your IRA distributions depends on your IRA type. Traditional IRAs are taxed as ordinary income. On the other hand, Roth IRAs are not taxed. SEP IRAs and SIMPLE IRAs are also not taxed. ### Related Topics - [Sustainable 401(k) Plan](https://www.carboncollective.co/401k) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing/) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Retirement Glossary](https://www.carboncollective.co/sustainable-investing/retirement-planning-glossary) - [Best Retirement Plans](https://www.carboncollective.co/sustainable-investing/the-10-best-retirement-plans) - [Wealth Manager Vs Financial Advisor](https://www.carboncollective.co/sustainable-investing/wealth-manager-vs.-financial-advisor) ![Attend Our Next Webinar](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-webinar.12af7b6e.svg) ### Attend Our Next Webinar Join our next Sustainable Investing 101 webinar, get our favorite DIY options, and walk through how we build our portfolios. [Watch Now](https://www.carboncollective.co/sustainable-investing-webinar-green-retirement-month) ![Get Our Newsletter](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-demo.6ed28722.svg) ### Get Our Newsletter Go a level deeper with us and investigate the potential impacts of climate change on investments like your retirement account. Join Newsletter ![close-typeform](data:image/gif;base64,R0lGODlhEQARAIAAAODn7P///yH5BAEHAAEALAAAAAARABEAAAIqBIKpab3v3EMyVHWtWZluf0za0XFNKDJfCq5i5JpomdUxqKLQVmInqyoAADs=) ![Talk To A Human](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-chat.49d48c5b.svg) ### Talk To A Human Joining a new investment service can be intimidating. We’re here for you. Click below to email us a question or book a quick call. [Ask a Question](https://ask.carboncollective.co/f70pooobq) Topics ## Sustainable Investing Topics View our list of some topics below. See More - Portfolios - [Performance](https://www.carboncollectiveinvesting.com/returns) - About - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - Learn - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - Contact - [Contact us](mailto:hello@carboncollective.co) - [Legal](https://www.carboncollective.co/legal) - [Privacy Policy](https://www.carboncollectiveinvesting.com/hubfs/2022-11%20Carbon%20Collective%20Privacy%20Policy.pdf) - [Back to top](https://www.carboncollectiveinvesting.com/sustainable-investing/ira-age-limitations#top-of-page) DISCLAIMERS: Advisory services provided by Carbon Collective Investment LLC (“Carbon Collective"), an SEC-registered investment adviser. A copy of Carbon Collective's current written disclosure statement discussing Carbon Collective’s business operations, services, and fees is available at the SEC’s investment adviser public information website – [www.adviserinfo.sec.gov](https://adviserinfo.sec.gov/firm/summary/310129) or [our legal documents here](https://blog.carboncollective.co/legal-documents/). The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. Carbon Collective does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Carbon Collective’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Investments in securities: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Carbon Collective's charges and expenses. Carbon Collective's internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form CRS, Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Carbon Collective is not registered. © 2026 Carbon Collective Corporation. All rights reserved. × #### Fact Checked Carbon Collective partners with financial and climate experts to ensure the accuracy of our content. Our team of reviewers are established professionals with years of experience in areas of personal finance and climate. They have contributed to top tier financial publications, such as Reuters, Axios, Ag Funder News, Bloomberg, Marketwatch, Yahoo! Finance, and many others. This team of experts helps Carbon Collective maintain the highest level of accuracy and professionalism possible. × #### Why Trust Carbon Collective Carbon Collective is the first online investment advisor 100% focused on solving climate change. We believe that sustainable investing is not just an important climate solution, but a smart way to invest. We follow ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. Much of our research comes from leading organizations in the climate space, such as Project Drawdown and the International Energy Agency (IEA). Our goal is to deliver the most understandable and comprehensive explanations of climate and finance topics. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including MarketWatch, Bloomberg, Axios, TechCrunch, Forbes, NerdWallet, GreenBiz, Reuters, and many others. We strive to empower readers with the most factual and reliable climate finance information possible to help them make informed decisions. } ```json { "@context" : "https://schema.org", "@type" : "Organization", "alternateName" : "Carbon Collective", "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "en", "contactType" : "customer service", "telephone" : "(650) 868-2697" }, "logo" : "https://www.carboncollective.co/hubfs/CarbonCollectiveLogo.png", "name" : "Carbon Collective Investing LLC", "sameAs" : [ "https://www.facebook.com/carboncollectiveinvesting/", "https://twitter.com/carbncollective", "https://www.instagram.com/carbon.collective/", "https://www.youtube.com/channel/UC769Y-F-L_B37kyQfdpvyXA", "https://www.linkedin.com/company/carbon-collective/", "https://www.crunchbase.com/organization/carbon-collective", "https://adviserinfo.sec.gov/firm/summary/310129", "https://www.wikidata.org/wiki/Q110243690" ], "url" : "https://www.carboncollective.co/" } ``` ```json { "@context": "https://schema.org", "@type": "BlogPosting", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://www.carboncollectiveinvesting.com/sustainable-investing/ira-age-limitations" }, "headline": "IRA Age Limitations | Contribution Limits & Exception to IRA Limits", "description": "Learn everything you need to know about the age limitations for IRA contributions, as well as the contribution limits and exceptions to those limits. ", "image": "https://20345524.fs1.hubspotusercontent-na1.net/hubfs/20345524/IRA_Age_Limitations_-_FI.png", "author": { "@type": "Person", "name": "https://20345524.fs1.hubspotusercontent-na1.net/hubfs/20345524/Brooke%20Tomasetti.png", "url": "https://www.carboncollectiveinvesting.com/sustainable-investing/author/brooke-tomasetti" }, "publisher": { "@type": "Organization", "name": "Carbon Collective", "logo": { "@type": "ImageObject", "url": "https://www.carboncollective.co/hubfs/CarbonCollectiveLogo.png" } }, "datePublished": "2022-12-16", "dateModified": "2024-10-01" } ```