IRA CONTRIBUTIONS

Contribution Limits

• Traditional IRA: The maximum contribution limit for 2024 is $6,500, or $7,500 if you are      age 50 or older.
• Roth IRA: The maximum contribution limit for 2024 is $6,500, or $7,500 if you are      age 50 or older.

Income Thresholds for Roth IRA Contributions - The ability to contribute to a Roth IRA is phased out based on your modified adjusted gross income (MAGI) and filing status.

• Single or Head of Household
  • Full Contribution: MAGI up to $138,000
  • Partial Contribution: MAGI between $138,000 and $153,000
  • No Contribution: MAGI above $153,000
• Married Filing Jointly or Qualifying Widow(er)
  • Full Contribution: MAGI up to $218,000
  • Partial Contribution: MAGI between $218,000 and $228,000
  • No Contribution: MAGI above $228,000
• Married Filing Separately
  • Partial Contribution: MAGI up to $10,000
  • No Contribution: MAGI above $10,000

  
  

Income Thresholds for Deductible Contributions to Traditional IRAs - The ability to deduct contributions to a Traditional IRA depends on your MAGI, filing status, and whether you or your spouse are covered by a retirement plan at work.

• Single or Head of Household
  • Covered by a retirement plan at work:
    • Full Deduction: MAGI up to $73,000
    • Partial Deduction: MAGI between $73,000 and $83,000
    • No Deduction: MAGI above $83,000
  • Not covered by a retirement plan at work:
    • Full Deduction: No income limit
• Married Filing Jointly
  • Covered by a retirement plan at work:
    • Full Deduction: MAGI up to $116,000
    • Partial Deduction: MAGI between $116,000 and $136,000
    • No Deduction: MAGI above $136,000
  • Not covered by a retirement plan at work but spouse is covered:
    • Full Deduction: MAGI up to $218,000
    • Partial Deduction: MAGI between $218,000 and $228,000
    • No Deduction: MAGI above $228,000
  • Neither spouse covered by a retirement plan at work:
    • Full Deduction: No income limit
• Married Filing Separately
  • Covered by a retirement plan at work:
    • Partial Deduction: MAGI up to $10,000
    • No Deduction: MAGI above $10,000
  • Not covered by a retirement plan at work:
    • Full Deduction: No income limit

    
    

Key Points

• Traditional IRA: Contributions may be tax-deductible depending on your income, filing      status, and whether you or your spouse are covered by a retirement plan a work.
• Roth IRA: Contributions are not tax-deductible, but qualified distributions are tax-free. Income limits apply to contributions.
• Catch-Up Contributions: Individuals age 50 or older can contribute an additional $1,000 to their IRAs.

For more detailed information, refer to IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).