When my wife and I were burgeoning young seniors at university we thought it would take years and years before we would make enough money to be ineligible to contribute to a Roth IRA any longer. Thankfully, we immediately opened Roth IRA accounts and immediately maxed them out as soon as we started making money after college. Below is a chart that shows both of our incomes as they changed over time and where we became ineligible to make a Roth IRA contribution.
Those four short years went by so fast.
Our friends in congress keep slowly increasing the maximum contribution amount as well as the income limits where the phase out begins, however, once we became ineligible our salaries rose faster than they were raising the income limits so we pretty much ruled it out as a possibility as long as we both worked.
This is why, for twenty-somethings about to graduate from college, it’s so, so, so important to max out that Roth IRA as early as possible. If you made good choices about what degree to get, you could be hitting the wall on Roth IRA eligibility extremely fast.