Is there a limit on how much you can contribute to a Roth IRA?

As of 2015, the Roth IRA contribution limit is the lesser of the taxpayer's taxable compensation or $5,500, according to the IRS. The contribution limit for those 50 and older is $6,500. If contributions exceed these limits, the IRS applies a 6 percent excise tax to the overage.

A Roth IRA is an individual retirement account, explains the IRS. The contributions to a Roth IRA grow tax-free, and the qualified distributions from it are also tax-free. Contributions to a Roth IRA cannot be deducted from income for tax purposes. To be eligible to open or contribute to a Roth IRA, the taxpayer's income must be below the IRS limit for the year of the contribution.