It depends on what type of IRA it is. Just about anyone can contribute to a traditional IRA, as long as you (or your spouse) receive taxable income and are under 70 and a half years old. Anyone with earned income can open and contribute to an IRA, including those who have a 401 (k) account through an employer. The only limitation is on the total contributions to your retirement accounts in a single year.
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. While there are ways to introduce money behind closed doors into a Roth IRA, such as contributing to a traditional IRA and converting to Roth, you can't invest money directly in a Roth IRA if your income exceeds the annual limit.
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. Your eligibility to deduct depends on your modified adjusted gross income (MAGI) and whether you and, if married, your spouse are covered by a workers' retirement plan (WRP), such as a 401 (k), 403 (b), SEP IRA or SIMPLE IRA. If you don't qualify to make a deductible contribution, you can still invest money in a traditional IRA. You can contribute to a traditional or Roth IRA even if you participate in another retirement plan through your employer or company.
If your IRA is a traditional account instead of a Roth account, you'll also owe income taxes if you withdraw money early. 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. It's possible to have a Roth IRA and a traditional IRA, or several IRAs at different institutions. People who have earned income and their spouses who don't work, if they file a joint return, can contribute to a traditional IRA.
This occurs when investors who have saved in a traditional IRA must start making the required minimum distributions (RMD). Keep in mind that income limits apply to traditional IRAs only if you or your spouse have a retirement plan at work. While the traditional IRA shares many features with its newer sister, the Roth IRA offers tax incentives to save for retirement and, under certain circumstances, each of them is governed by a different set of rules.