Understanding Traditional IRA Income Limits for Retirement Planning

Changes coming to IRAs — Roth and traditional — may mean more money for you in retirement. If you want to make a regular Roth IRA contribution but are disqualified because your income is too high, you can circumvent the income limits by using a backdoor Roth IRA. This involves making a nondeductible contribution to a traditional IRA and then converting it to a Roth IRA.

The IRA contribution limit is $7000, or $8000 for individuals 50 or older in 2024. Anyone can contribute to a traditional IRA, but your ability to deduct those contributions may be limited based on your income and whether you or your spouse have access to a retirement plan at work.

The contribution limits for 401(k)s, 403(b)s, IRAs, and HSAs will change for 2025. Here's what you need to know. To contribute to a Roth IRA (and score those sweet tax advantages), you have to fall within the income limits set by the IRS. Here are the Roth IRA income limits for 2024.

The IRA contribution limits increase to $7000 in 2024, or $8000 for those 50 and older. The amounts are $500 higher than the 2023 IRA contribution limits. The Internal Revenue Service (IRS) always gets its cut, but a Roth individual retirement account (IRA) lets you get the pain over with upfront.

Experts say that deciding between a traditional IRA and a Roth IRA comes down to how much you earn and your projected income level in retirement. The contribution limit for a SEP IRA is the lesser of: 25 percent of the employee's compensation; $66,000 (in 2023), or $69,000 (in 2024).