The combined contribution limit allows you to contribute to a traditional IRA or a Roth IRA. You can open a traditional IRA through a bank, brokerage agency, investment fund, or insurance company and invest the money from your IRA in stocks, bonds, mutual funds, exchange-traded funds, and other approved investments. IRA account renewals and transfers don't count as contributions, so they won't affect your ability to fund an IRA. This means that if you're retired and no longer receiving compensation, you can't make a contribution to an IRA, although you can transfer money from a 401 (k) to an IRA.
People who juggle multiple IRA accounts or who set automatic contributions that are too high could end up investing too much money in a Roth IRA or a traditional IRA. However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age. If you don't have taxable compensation but file a joint return with an earning spouse, you can open an IRA in your name and make contributions through a spousal IRA.