The IRA contribution limit for 2024 is $7,000 plus $1,000 catch-up for those age 50 or older. This is the maximum that may be contributed to all of your IRAs combined, regardless if you contribute to both a traditional IRAs and a Roth IRA.
Annual contributions to IRAs must be made in money (cash, check, or money order); therefore, property cannot be contributed.
In year’s that you don’t work, contributions can’t be made to your IRA unless you receive taxable alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation.
IRA contributions can be made for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2024 must be made by April 15, 2025
IRA contributions are based on compensation. Here is a sample chart published by the IRS of what is and what is not deemed compensation for making IRA contributions.
Traditional IRA Contributions Can Be Made BUT Not Always Tax Deductible
For traditional IRAs, phase-out limits apply in determining if the IRA contribution is partially, fully or non-deductible.
- IRA deductibility phase-out for single taxpayers participating in employer plans rises to $77,000 – $87,000 (was $73,000 – $83,000)
- IRA deductibility phase-out for married joint filing taxpayers participating in employer plans rises to $123,000 – $143,000 (was $116,000 – $136,000)
- IRA deductibility phase-out for married with spouse an active participant in an employer plan rises to $230,000 – $240,000 (was $218,000 – $228,000
Traditional IRA deduction limits
| 2023 IRA deduction limit — You are covered by a retirement plan at work | ||
|---|---|---|
| Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
| Single individuals | ≤ $73,000 | Full deduction up to the amount of your contribution limit |
| > $73,000 but < $83,000 | Partial Deduction | |
| ≥ $83,000 | No deduction | |
| Married (filing joint returns) | ≤ $116,000 | Full deduction up to the amount of your contribution limit |
| > $116,000 but < $136,000 | Partial Deduction | |
| ≥ $136,000 | No deduction | |
| Married (filing separately)1 | < $10,000 | Partial deduction |
| ≥ $10,000 | No deduction | |
| 2023 IRA deduction limits — You are NOT covered by a retirement plan at work | ||
|---|---|---|
| Filing Status | Modified adjusted gross income (MAGI) | Deduction limit |
| Single, head of household, or qualifying widow(er) | Any amount | A full deduction up to the amount of your contribution limit |
| Married filing jointly with a spouse who is not covered by a plan at work | Any amount | A full deduction up to the amount of your contribution limit |
| Married filing jointly with a spouse who is covered by a plan at work | $218,000 or less | Full deduction up to the amount of your contribution limit |
| > $218,000 but < $228,000 | A partial deduction (calculate) | |
| ≥ $228,000 or more | No deduction | |
| Married filing separately with a spouse who is covered by a plan at work | < $10,000 | Partial deduction |
| ≥ $10,000 | No deduction | |
| 2024 IRA deduction limit — You are covered by a retirement plan at work | ||
|---|---|---|
| Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
| Single individuals | ≤ $77,000 | Full deduction up to the amount of your contribution limit |
| > $77,000 but < $87,000 | Partial deduction | |
| ≥ $87,000 | No deduction | |
| Married (filing joint returns) | ≤ $123,000 | Full deduction up to the amount of your contribution limit |
| > $123,000 but < $143,000 | Partial deduction | |
| ≥ $143,000 | No deduction | |
| Married (filing separately)1 | < $10,000 | Partial deduction |
| ≥ $10,000 | No deduction | |
| 2024 IRA deduction limits — You are NOT covered by a retirement plan at work | ||
|---|---|---|
| Filing Status | Modified adjusted gross income (MAGI) | Deduction limit |
| Single, head of household, or qualifying widow(er) | Any amount | A full deduction up to the amount of your contribution limit |
| Married filing jointly with a spouse who is not covered by a plan at work | Any amount | A full deduction up to the amount of your contribution limit |
| Married filing jointly with a spouse who is covered by a plan at work | $230,000 or less | Full deduction up to the amount of your contribution limit |
| > $230,000 but < $240,000 | A partial deduction | |
| ≥ $240,000 or more | No deduction | |
| Married filing separately with a spouse who is covered by a plan at work | < $10,000 | Partial deduction |
| ≥ $10,000 | No deduction | |
Roth IRA Income Limits Apply
As stated above, compensation is required in order to make annual Roth IRA contributions. Also, you may not be able to make any Roth IRA contributions if your earned income is too high or the year.
- Roth IRA income limitations for determining maximum contribution for married joint filers: phase-out range rises to $230,00 – $240,000 (was $218,000 – $228,000)
- Roth IRA income limitation for determining maximum contribution for single filers and heads-of-households: phase-out range rises to $146,000 – $161,000 (was $138,000 – $153,000)
What happens if you contribute too much to your IRA?
If you contributed too much to your IRA or Roth IRA, you can remove the over contribution amount and the earnings on that amount by your personal tax (Form 1040) return due date. The gains will be taxable and reported by the IRA custodian issuing Form 1099-R.
If the excess contribution and the earnings are not removed by your personal tax return deadline, a 6% excess tax penalty will be due until it has been removed.
