IRA Contribution Limits Calculator | TIAA (2024)

FAQs

Is there an income limit for IRA contributions? ›

You can contribute to a Roth IRA if your Adjusted Gross Income (AGI) is: Less than $153,000 (single filer) 2023 tax year. Less than $228,000 (joint filer) 2023 tax year. Less than $161,000 (single filer) 2024 tax year.

Annual IRA Contribution Limit

The total contribution to all of your Traditional and Roth IRAs cannot be more than the annual maximum for your age or 100% of earned income, whichever is less.

For 2024, you can contribute up to $23,000 to a 401(k) unless you're 50 or older, in which case you can contribute an additional $7,500, or $30,500 total. You can also contribute up to $7,000 to an IRA unless you're 50 or older—in that case, you can contribute an additional $1,000, or $8,000 total.

For tax year 2024, single and head-of-household filers with MAGIs of $146,000 to $161,000 can contribute only limited amounts. The income phaseout range for married couples filing jointly is $230,000 to $240,000. Taxpayers with incomes above those top numbers cannot contribute anything to a Roth IRA.

The IRS puts annual income limits on a Roth IRA. When you exceed that limit, the IRS generally charges a 6% tax penalty for each year the excess contributions remain in your account. This is triggered at the time you file each year's taxes, giving you until that deadline to remove or recharacterize the misplaced funds.

Taxpayers who are married and filing jointly must have incomes of $76,500 or less in 2024. All head-of-household filers must have incomes of $57,375 or less in 2024. Single taxpayers must have incomes of $38,250 or less in 2024.

Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. The tax can't be more than 6% of the combined value of all your IRAs as of the end of the tax year.

If an employer retirement plan covers you and your income is above certain limits, you cannot deduct your contributions to a traditional IRA. The deduction phases out in 2024 when your modified adjusted gross income is between $77,000 and $87,000 (single) or $123,000 and $143,000 (married filing jointly).

Under age 50 you may deduct up to $6,500. Over age 50 you may deduct up to $7,500.

IRA contributions will be reported on Form 5498: IRA contribution information is reported for each person for whom any IRA was maintained, including SEP or SIMPLE IRAs. An IRA includes all investments under one IRA plan.

What is the age limit for IRA contributions? ›

MAGI determines how much of your Traditional IRA contribution is deductible, if at all. Who is eligible to contribute to a Traditional IRA? Anyone with an earned income and their spouses, if married and filing jointly, can contribute to a Traditional IRA. There is no age limit.

Traditional IRA

Deductions vary according to your modified adjusted gross income (MAGI) and whether or not you're covered by a retirement plan at work. If you (and your spouse, if applicable) aren't covered by an employer retirement plan, your traditional IRA contributions are fully tax-deductible.

Yes. Backdoor Roth IRAs are still allowed in 2024. However, there has been talk of eliminating the backdoor Roth in recent years. And the future is, of course, difficult to predict.

The reality is that becoming a Roth IRA millionaire is impossible without giving yourself enough time to take full advantage of compound interest. In investing, compound interest happens when the interest you make on investments begins to make interest on itself.

While the contribution limits for IRAs are relatively low compared to other accounts, you can still have a shot at building a million-dollar IRA if you invest wisely. Unlike a 401(k), a Roth IRA gives you the flexibility to invest in all types of assets, including exchange-traded funds and individual stocks.

You can't contribute more than your earned household income. If your earned household income for the year is less than the contribution limit, then your personal IRA contribution limit reflects your earned household income.

If you are retired, you can still contribute to your Roth IRA account indefinitely, with a few stipulations: You cannot contribute an amount higher than your earnings, you must still be receiving earned income and you can still only contribute up to the annual contribution limits.

Be aware you'll have to pay a 6% penalty each year for every year the excess amounts stay in the IRA. The tax can't be more than 6% of the total value of all your IRAs at the end of the tax year.

No age limit for contributions – You can contribute to your IRA as long as one spouse is generating earned income. Total income threshold for Roth IRA contributions – If you and your spouse make a combined $218,000 or less in 2023 or $230,000 or less in 2024, you can contribute up to the limit in a Roth IRA.