IRA Contribution Limits for 2023 and 2024

The past couple years have been a wild ride! Even with all the crazy going on, you have to stay focused on your retirement goals. And an important part of making sure those goals are on track is knowing how much IRA contribution limits are in 2024. 

When we talk about contribution limits for a Roth or traditional IRA, we’re just talking about how much money you can legally put into the account each year.

So, what are the 2024 (and 2023) IRA contribution limits, and what factors affect those limits? We'll break it down for you.

What Are the 2024 IRA Contribution Limits?

For 2024, the total contribution limit of your IRAs, Roth or traditional, is no more than $7,000 ($8,000 if you’re 50 or older).¹ You have until Tax Day of the following year, normally April 15, to make your contributions. Pretty straightforward, right? Ah, not so fast!

Exceptions to the Contribution Rules

While the contributions we’ve talked about so far come from your income and count toward the annual limit, any rollover contributions (like rolling money from a 401(k) to a Roth IRA) do not count toward the limit. That’s because it’s money you’ve already contributed, and you’re just moving it from one home to another.

Even if you participate in an employer-sponsored retirement plan, like a 401(k), you can still contribute to a Roth or traditional IRA.

Some good news is that the government removed the age limit of 70 1/2 on contributing to traditional IRAs.² As of 2020, there’s no age limit on making contributions to a traditional IRA—and there’s never been one with Roth IRAs.

Income and Deduction Limits

The IRS loves rules. And they’ve got some rules about how your income level impacts the Roth and the traditional IRA. In both cases, you’ll need to know your modified adjusted gross income (MAGI)—that’s just your gross income minus any adjustments—to figure out how much you’re allowed to contribute or deduct.³

Roth IRA Income Limits for Contributions

Let’s talk about Roth IRAs first—they’re our favorite because your money is allowed to grow tax-free. Remember, the contribution limit for any IRA—Roth or traditional—in 2024 is $7,000 (or $8,000 if you’re 50 or older). But with Roth IRAs, there are actually a few more limitations on your contributions based on your tax filing status and income.⁴ If you’re not sure exactly where you land, you’ll want to get with your investment pro to figure it out.

2024 Roth IRA Contribution Limits

If your filing status is . . .	And your modified AGI is . . .	Then you can contribute . . .
Married filing jointly or qualifying widow(er)	Less than $230,000	Up to the $7,000 limit ($8,000 if you’re 50 or older)
Married filing jointly or qualifying widow(er)	$230,000 to $240,000	A reduced amount
Married filing jointly or qualifying widow(er)	$240,000 or more	Zero
Single or married filing separately and you did not live with your spouse at any time during the year	Less than $146,000	Up to the $7,000 limit ($8,000 if you’re 50 or older)
Single or married filing separately and you did not live with your spouse at any time during the year	$146,000 to $161,000	A reduced amount
Single or married filing separately and you did not live with your spouse at any time during the year	$161,000 or more	Zero5

You see, if you earn above a certain income, you’re not even eligible for a Roth IRA. But you can still get around this loophole by opening up a backdoor Roth. Just know that the process isn’t as straightforward.

2023 Roth IRA Contribution and Income Limits

Looking back at 2023, the IRS set the annual contribution limit at $6,500 (or $7,500 if you’re 50 or older). Here are the IRS income limits for Roth IRA contributions.

2023 Roth IRA Contribution Limits

If your filing status is . . .	And your modified AGI is . . .	Then you can contribute . . .
Married filing jointly or qualifying widow(er)	Less than $218,000	Up to the $6,500 limit ($7,500 if you’re 50 or older)
Married filing jointly or qualifying widow(er)	$218,000 to $228,000	A reduced amount
Married filing jointly or qualifying widow(er)	$228,000 or more	Zero
Single or married filing separately and you did not live with your spouse at any time during the year	Less than $138,000	Up to the $6,500 limit ($7,500 if you’re 50 or older)
Single or married filing separately and you did not live with your spouse at any time during the year	$138,000 to $153,000	A reduced amount
Single or married filing separately and you did not live with your spouse at any time during the year	$153,000 or more	Zero6

2024 Traditional IRA Tax Deductions

Now just to refresh, with traditional IRAs you may be able to deduct your contributions on your annual tax return. Tax deductions help you keep more of your hard-earned money in your pocket. There are three things that determine the amount of the tax deduction you can take—filing status, income, and if you or your spouse have a retirement account through your employer.⁷

How much will you need for retirement? Find out with this free tool!

You can take a full deduction up to the limit ($7,000, or $8,000 if you’re 50 or older), regardless of your income and filing status, if neither you or your spouse participate in an employer-sponsored retirement plan (401(k) or 403(b)). If you do contribute to an employer-sponsored plan, things get a little trickier.

Here’s all the info for 2024:

• If your filing status is single, you can take a full deduction if your income is less than $77,000. You get a partial deduction if your income is $77,000–87,000, and no deduction if you make more than $87,000.

• If your status is married filing jointly, you get a full deduction if you make less than $123,000. If your income is between $123,000 and $143,000, the deduction is only partial, while anyone making more than $143,000 gets no deduction.⁸

There’s one more qualifying factor for deductions, and it’s when you’re not covered by a retirement plan at work but your spouse participates in one.

• If you’re married filing jointly, you can take a full deduction if you make less than $230,000, a partial deduction with an income between $230,000 and $240,000, and no deduction if you make more than $240,000.
• If you’re married filing separately, and have an income of less than $10,000, you get a partial deduction. For those making more than $10,000, there’s no deduction.⁹

Whew! That’s a lot, but important to note, because we want you to know that you can deduct your contributions if you happen to be contributing to a traditional IRA.

2023 Traditional IRA Tax Deductions

When you file your taxes for 2023, you can take a full deduction up to the limit ($6,500, or $7,500 if you’re 50 or older), regardless of your income and filing status, if neither you or your spouse participate in an employer-sponsored retirement plan. If you did contribute to an employer-sponsored plan, the IRS increased income limits for inflation:

• If your filing status is single, you can take a full deduction if your income is less than $73,000. You get a partial deduction if your income is $73,000–83,000 and no deduction if you make more than $83,000.

• If your status is married filing jointly, you get a full deduction if you make less than $116,000. If your income is between $116,000 and $136,000, the deduction is only partial, and anyone making more than $136,000 gets no deduction.¹⁰

If you’re not covered by a retirement plan at work but your spouse participates in one.

• If you’re married filing jointly, you can take a full deduction if you make less than $218,000, a partial deduction with an income between $218,000 and $228,000, and no deduction if you make more than $228,000.
• If you’re married filing separately and have an income of less than $10,000, you get a partial deduction. For those making more than $10,000, there’s no deduction.¹¹

Other IRA Limits

More than 4 out of 10 (42%) U.S. households currently use an IRA for their retirement savings.¹² While the bulk of those own the Roth and traditional IRAs we’ve already covered, there are a few million households that have two other types—SEP and SIMPLE IRAs—made for small-business owners and the self-employed.¹³ So, if you’re killing it as your own boss, or working for the backbone of the American economy at a small business, what are the contribution limits for these IRAs?

A SEP-IRA is a Simplified Employee Pension IRA where only employers contribute to the plan. For 2024, employers can contribute up to 25% of an employee’s salary or a total of $69,000 (whichever one is less).¹⁴ 

With a SIMPLE IRA the employee and the employer can contribute. And for 2024, SIMPLE IRA plan participants can save up to $16,000 (anyone 50 or older can add an additional $3,500 catch-up contribution).¹⁵ The bonus with the SIMPLE IRA is that employers are normally required to offer a 3% match for their employees.¹⁶ That’s free money!

Get With a SmartVestor Pro

Remember, we want you to invest 15% of your annual gross income for retirement. You’ll want to start with your employer-sponsored plan, if you have one, and contribute up to the company match—but after that, pile up your money in a Roth IRA (if your employer-sponsored plan isn’t already a Roth 401(k)). So, these limits are important!

To understand the big picture of your financial situation and how to get to that 15%, get with a SmartVestor Pro. They’re RamseyTrusted and know what options you have based on your timeline to retirement, tax obligations and anything else relevant to your situation. 

Find your SmartVestor Pro today