Individual Retirement Accounts and Roth IRa
IRA Roth IRA New for 2024
What’s New for 2024
IRA contribution limit increased for 2024. Beginning in 2024, the IRA contribution limit is increased to $7,000 ($8,000 for individuals age 50 or older) from $6,500 ($7,500 for individuals age 50 or older).
Modified AGI limit for traditional IRA contributions increased. For 2024, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:
- More than $123,000 but less than $143,000 for a married couple filing a joint return or a qualifying surviving spouse,
- More than $77,000 but less than $87,000 for a single individual or head of household, or
- Less than $10,000 for a married individual filing a separate return.
Modified AGI limit for certain married individuals increased.
If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $230,000 (up from $218,000 for 2023) but less than $240,000 (up from $228,000 for 2023). If your modified AGI is $240,000 or more, you can’t take a deduction for contributions to a traditional IRA.
Modified AGI limit for Roth IRA contributions increased. For 2024, your Roth IRA contribution limit is reduced (phased out) in the following situations.
- Your filing status is married filing jointly or qualifying surviving spouse and your modified AGI is at least $230,000. You can’t make a Roth IRA contribution if your modified AGI is $240,000 or more.
- Your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time in 2024 and your modified AGI is at least $146,000. You can’t make a Roth IRA contribution if your modified AGI is $161,000 or more.
- Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more.
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