2024 Traditional and Roth IRA Contribution Limits

As we approach the New Year, it is important to stay informed about 2024 contribution limits for Traditional and Roth IRAs. Being aware of these limits can help maximize retirement savings opportunities. Below is an overview on contribution limits, as well as Roth IRA eligibility income limits and Traditional IRA tax deduction eligibility income limits.

For both traditional IRA and Roth IRA accounts, the maximum contribution limit is $7,000. The catch-up amount for individuals ages 50+ is $1,000. It is important to note that the contribution limit is the lesser of the dollar limitation or 100% of earned income.

To determine your ability to contribute to a Roth IRA, or your ability to make a deductible traditional IRA contribution, you will need to calculate your Modified Adjusted Gross Income (MAGI) by taking your Adjusted Gross Income (AGI) and adding back specific items, including:

• Foreign income
• Foreign housing deductions
• Student loan deductions
• IRA contribution deductions
• Deductions for higher education costs

It is important to note that Roth IRA conversion amounts are generally excluded from MAGI. Consider speaking with your tax advisor for assistance in calculating both your AGI and MAGI if you are uncertain of your amount.

If you are covered by your employer’s retirement plan:

To learn more, click here to view our document on 2024 Tradition and Roth IRA Contribution limits. 

For personalized strategies to take advantage of these updates, consult with an Oppenheimer financial professional to ensure your retirement savings align with your goals. Find one in your area here.