Income limit.

In plain English

An income limit is a line in the tax code where a benefit starts to shrink or disappears once your income climbs above it. Many tax breaks, credits, and accounts use them. The Roth IRA is a common example: earn above a certain amount and you can no longer contribute directly, though a workaround called the backdoor Roth exists. Limits are often a phase-out range rather than a hard cliff, so a benefit fades gradually as income rises, and they usually adjust with inflation each year.

01Why it matters

Income limits decide whether you qualify for valuable tax breaks, and crossing one can quietly cost you a deduction, a credit, or the ability to use an account.

02The math, step by step

A single filer earning above the Roth IRA income limit cannot contribute directly that year. Just below it, they can put in the full amount.

03What this is NOT