IRA Contribution Limits 2023-2024
I. Traditional IRA
For the year 2023, the contribution limit is set to $6,500 and the maximum catch-up contribution (for individuals of more than 50 years of age) is $1,000. The yearly contribution limit in the traditional IRA for 2024 is capped at $7,000 keeping the catch-up limit constant at $1,000.
For an individual who does not have a 401(k) or any other employer-sponsored retirement plan, traditional IRAs are completely deductible. However, if the individual or his/her spouse has a company-sponsored retirement plan, then their modified adjusted gross income (MAGI) would determine the amount that can be deducted from their traditional IRA. The below chart would help in determining the deductions for the years 2023 and 2024.
| Filing Status | 2023 MAGI | 2024 MAGI | Deductions |
|---|---|---|---|
| Single Taxpayers or Head of Household | |||
| $73,000 or less | $77,000 or less | Full deduction up to the level of contribution | |
| More than $73,000 but less than $83,000 | More than $77,000 but less than $87,000 | Partially deductible | |
| $83,000 or more | $87,000 or more | Zero deduction | |
| Married Filing Jointly | |||
| $116,000 or less | $123,000 or less | Full deduction up to the level of contribution | |
| More than $116,000 but less than $136,000 | More than $123,000 but less than $143,000 | Partially deductible | |
| $136,000 or more | $143,000 or more | Zero deduction | |
| Married Filing Separately | |||
| Less than $10,000 | Less than $10,000 | Partially deductible | |
| $10,000 or more | $10,000 or more | Zero deduction | |
| Married and only spouses have a retirement plan at work | |||
| $218,000 or less | $230,000 or less | Full deduction up to the level of contribution | |
| More than $218,000 but less than $228,000 | More than $230,000 but less than $240,000 | Partially deductible | |
| $228,000 or more | $240,000 or more | Zero deduction | |
II. Roth IRA
The maximum annual contributions for 2023 and 2024 in Roth IRAs are similar to traditional IRAs. But, there are limitations in income for contributing to a Roth IRA. The below chart depicts the income limitations for the contributions.
| Filing Status | 2023 MAGI | 2024 MAGI | Contributions |
|---|---|---|---|
| Single taxpayers or Heads of Household | |||
| < $138,000 | < $146,000 | Up to the limit | |
| > $138,000 and < $153,000 | > $146,000 and < $161,000 | Reduced amount | |
| $153,000 or more | $161,000 or more | Zero limit | |
| Married Filing Jointly or Qualifying Widow(er) | |||
| < $218,000 | < $230,000 | Up to the limit | |
| > $218,000 and < $228,000 | > $230,000 and < $240,000 | Reduced amount | |
| $228,000 or more | $240,000 or more | Zero limit | |
| Married Filing Separately | |||
| < $10,000 | < $10,000 | Reduced amount | |
| $10,000 or more | $10,000 or more | Zero limit | |