IRA Contribution Deadlines and Thresholds for 2023 and 2024 (2024)

As a general rule, you have until tax day to make IRA contributions for the prior year. In 2024, that means you can contribute toward your 2023 tax year limit of $6,500 until April 15. And as of Jan. 1, 2024, you can also make contributions toward your 2024 tax year limit of $7,000 until tax day in 2025. If you need help figuring out how an IRA can help with your retirement goals, consider working with a financial advisor.

What Is an IRA?

An IRA is a tax-advantaged retirement account that is mainly used by people who freelance or are self-employed.Workers with traditional jobs can also use it to supplement any benefits that they may receive through their employer. You should note, however, that the IRS does not consider rents, dividends, interests, pensions, deferred compensations and other incomes as eligible compensation for IRA contributions.

In a traditional IRA you make contributions with pre-tax dollars, then pay taxes on all profits from this account when you withdraw the money in retirement. In a Roth IRA, you pay taxes on the income you put in but pay none when you take the money out. That is, you pay no taxes on the account’s profits.

The IRS sets annual IRA contribution limits, income thresholds and deadlines for your account.

IRA Contribution Limits for 2023 and 2024

The contribution limit sets how much you can contribute to a qualifying IRA plan every year.You cannot make contributions to a Roth IRA past the limit. However, for traditional IRAs, you can continue to invest money above the limit but will lose the income tax deduction.

For tax years 2023 and 2024, the IRS published the following limits on IRAs:

2023 Tax Year

2024 Tax Year

These limits apply to all IRA accounts for an individual taxpayer. This means that a single young taxpayer could split up to the limit for each year between their Roth IRA and traditional IRA. A married couple could invest up to double the amount of the limit in their combined accounts. Past this cap, you can continue making contributions to a traditional IRA but must do so with post-tax dollars.

It is important to note that the contribution limit is per taxpayer, not per account. So if you have both a traditional IRA and a Roth IRA you must split your contributions across both accounts up to the limit. Married couples filing jointly can each maximize their contributions.

Keep in mind that you can only contribute to an IRA with earned income. This means that you cannot use income from sources such as investments, dividends or excess student loan money.

And finally, make sure you factor in the age limit into your contributions. For a traditional IRA, you cannot make contributions after age 73. This started with the 2023 tax year. But for a Roth IRA, you can continue to make contributions at any age.

How IRA Income Thresholds Work

The income thresholds for an IRA define how much of the contribution limit you are allowed to use. This is because the IRS phases out some of the tax advantages of an IRA for wealthier savers. As you earn more money, the government decides that you need less help saving for retirement. However, if neither you nor your spouse is enrolled in an employer retirement plan such as a 401(k), you can always make the full IRA contribution regardless of income.

The IRA contribution limit is also adjusted by the age of the taxpayer. Older taxpayers can invest more in their retirement accounts. This is known as the catch-up contribution limit and applies to savers age 50 and older.

IRA Contribution Deadlines for 2023 and 2024

You should also note that the contribution deadline for IRA limits when contribution limits roll over each year. At this point, any new contributions count against the next year’s limits and the old year is considered closed.

This deadline allows you to make your contributions until the following year’s tax deadline. So taxpayers can make all of their IRA contributions for a given year starting on Jan. 1 and ending on Tax Day for that year’s taxes, which will give you a four-month overlap to take advantage of either year’s contribution limits for your IRA.

For 2023, taxpayers began making contributions toward that tax year’s limit as of Jan. 1, 2023.This deadline expires when 2023taxes are due on April 15, 2024. And as of Jan. 1, 2024, taxpayers can also make contributions toward their 2024 tax year limit until tax day in 2025.

Traditional IRA Income Thresholds for 2023 and 2024

Your income and whether you participate in an employer-sponsored retirement plan determines how much of the contribution limit you can take for a traditional IRA. If you qualify for a reduced contribution limit, you can find further guidance in Worksheet 1 of IRS Publication 590-A.

Firstly, let’s sayyou are single and do not participate in an employer-sponsored retirement plan, or you are married and neither you nor your spouse participates in an employer-sponsored retirement plan. For tax years 2023 and 2024, there is no income threshold for contributing to a traditional IRA.

Here are the income limits if you participate in an employer-sponsored retirement plan:

If you are a single filer, you can make a full contribution if you have an AGI of less than $73,000 in 2023 and $77,000 in 2024. You can make a partial contribution if you have an AGI of between $73,000 and $83,000 in 2023 or between $77,000 and $87,000 in 2024.

For married couples, you can make a full contribution if you have an AGI of less than $116,000 in 2023 or $123,000 in 2024. You can make a partial contribution if you have an AGI of between $116,000 and $136,000 in 2023, which goes up to between $123,000 and $143,000 in 2024.

Roth IRA Income Thresholds for 2023 and 2024

The income limits for a Roth IRA apply to all taxpayers. It doesn’t matter whether you participate in an employer-sponsored retirement plan or not. As noted above, if you qualify for a reduced contribution limit, you can find further guidance in Worksheet 1 of IRS Publication 590-A.

Roth IRA Income Thresholds

IRA Contribution Rules for Members of the Military

Members of the military who serve in a combat zone or who provide otherwise qualifying service receive an extension to making contributions to their IRA under the previous year’s limits. This extension is typically within 180 days of:

Bottom Line

The IRA contribution amounts and income thresholds are increasing in both 2023 and 2024. It’s important to pay attention to the amounts so that you maximize the contribution you’re able to make to these accounts. Keep in mind that the deadline to contribute for a year does not end until tax day occurs to file taxes for that year, which typically gives you 3.5 additional months into the next year to contribute.

Tips for Saving for Retirement

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