There are no income limits for traditional IRAs 1; however, there are income limits for tax-deductible contributions. There are income limits for Roth IRAs. No, there is no maximum income limit for a traditional IRA. Anyone can contribute to a traditional IRA.
While a Roth IRA has a strict income limit and people with incomes above it can't contribute at all, that rule doesn't apply to a traditional IRA. If you (and your spouse if you are married) are not covered by an employer-sponsored plan, the contributions are fully deductible (with no income limits). Many, but not all, Americans can invest in a traditional IRA with pre-tax funds and claim a deduction for their contribution in the year in which it is made. Remember that you are also not subject to income limits when you make contributions to a SIMPLE IRA or an SEP IRA; options that are only available if your employer offers them, if you are a small business owner, or if you are self-employed and can open one on your own.
If you're covered by an employer-sponsored retirement plan, contributions are only partially or fully deductible if your adjusted gross income (AGI) is. Traditional IRAs don't have this rule, as do other types of IRAs, such as SEP IRAs and SIMPLE IRAs, which are often used by self-employed individuals and small business owners. While there is no general limit for contributing to a traditional IRA, there are income limits for tax-deductible contributions. If you file a joint return, you may be able to contribute to an IRA even if you haven't had taxable compensation for as long as your spouse did.
If you exceed your income limits, you won't be able to contribute pre-tax funds to your account, but you'll still be able to make non-deductible contributions and benefit from tax-free growth. Either way, a spouse with earned income can contribute to both spouses' IRAs, as long as there is enough earned income to cover both contributions. If your spouse is covered by a plan at work, there's also a limit to the amount of tax-deductible contributions you can make to your traditional IRA each year. However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participate in another retirement plan at work.
Be sure to pay attention to the IRS contribution limits for the year, keep track of your contributions and control your income. However, you'll pay taxes on deductible contributions and earnings when you withdraw money during retirement. Contributing to your employer-sponsored plan is a great place to start saving for the retirement you envision. This type of account can provide you with immediate tax benefits, and your contributions can increase with deferred taxes.
You can contribute to a SIMPLE IRA or SEP no matter how high your income is, as long as you meet the eligibility requirements for these types of accounts.