IRA contribution limits can change from 12 months to 12 months, and the max quantity you possibly can put in additionally relies on your age.
Word that it doesn’t matter what, the quantity you set in can’t be greater than your taxable compensation for the 12 months.
Have a look beneath for the bounds based mostly on the type of IRA. Keep in mind that IRA is one in every of many retirement plan choices accessible.
Conventional & Roth IRA Contribution Limits
| Yr | Regular Restrict | Age 50+ Restrict |
|---|---|---|
| 2024 | $7,000 | $8,000 (contains $1,000 catch-up) |
| 2023 | $6,500 | $7,500 (contains $1,000 catch-up) |
| 2022 | $6,000 | $7,000 (contains $1,000 catch-up) |
| 2021 | $6,000 | $7,000 (contains $1,000 catch-up) |
| 2020 | $6,000 | $7,000 (contains $1,000 catch-up) |
| 2019 | $6,000 | $7,000 (contains $1,000 catch-up) |
| 2018 | $5,500 | $6,500 (contains $1,000 catch-up) |
| 2017 | $5,500 | $6,500 (contains $1,000 catch-up) |
These contribution limits are complete contribution limits for the 12 months, not per kind of IRA.
So for instance, for those who’re beneath age 50 in 2024, you would contribute as much as $4,500 to a Roth IRA and as much as $2,500 to a Conventional IRA for a complete of as much as $7,000. (Or every other combo that provides as much as the max of $7,000.) When you’re age 50+, you are able to do an additional $1000 as a catch-up.
There was a rule that you just needed to cease contributing to your Conventional IRA beginning the 12 months you reached age 70½, however for tax years starting after December 31, 2019 that rule has been repealed.
SEP IRA Contribution Limits
The contribution limits for a SEP IRA range based mostly on who’s doing the contributing.
In case you are the employer, probably the most you possibly can contribute is the lesser of both:
- 25% of the worker’s annual compensation, or
- the identical share of wage for every worker (As much as $69,000 in 2024, $66,000 in 2023, $61,000 in 2022, $58,000 in 2021, $57,000 in 2020, or $56,000 in 2019.)
Elective wage deferrals and catch-up contributions usually are not allowed in SEP plans.
In case you are self-employed, the quantity you’re allowed to place in will get extra advanced. It’s essential to base your contribution on web revenue – minus one-half of the self-employment tax – minus your SEP contribution. (The IRS has has extra about this in Pub. 560.)
Summing Up
In abstract, the IRA contribution limits range relying on the 12 months, your age, and your taxable compensation. If potential, placing within the max could be nice! Remember to speak with somebody acquainted with your scenario and the foundations.
