What You Need to Know About 2024 IRA Contribution Limits

2024 IRA contribution limits

Almost every year, the IRS updates the contribution limits allowed for individual retirement accounts (IRAs). As someone who contributes to an IRA, you should be aware of how much you can contribute annually. This way, you can maximize your contributions without going over the limit. In 2024, contributions increase for all IRA types.

Are IRA Contribution Limits Increasing?

Yes — in 2024, the IRA contribution limit for Roth and traditional plans increases to $7,000 or $8,000 for contributors 50 or older. These numbers are higher than in 2023, when the contribution limit was $6,500 and $7,500, respectively. Whether you contribute to a traditional or Roth IRA, you can contribute up to that much annually for 2024.

However, Roth IRAs have income limits, so you may have to reduce your contributions if your modified adjusted gross income (MAGI) exceeds a specific threshold. Further, if you or your spouse also have access to a workplace retirement plan, the amount you can deduct from your income for a traditional IRA phases out at a certain MAGI.

Similarly, contribution limits for business IRAs go up in 2024. For simplified employee pension (SEP) plans, an employer can contribute up to 25% of the employee’s total compensation or $69,000, whichever is less — the $69,000 is up from $66,000 in 2023. For savings incentive match plans for employees (SIMPLE), employee salary reduction contributions are now $16,000, and an employer making nonelective contributions can now factor in employee compensation up to $345,000.

Roth and Traditional IRA Defined Contribution Limits for 2024

Understanding 2024 self-directed IRA contribution limits can help you make informed decisions about your retirement plan according to your financial situation and guide your actions during tax season.

Roth IRA

Here are the Roth IRA contribution limits in 2024 based on MAGI:

  • Single, head of household, or married, filing separately: If your income is $146,000 or less, you can contribute $7,000 or $8,000 if you are 50 or older. If your income is over $146,000 but less than $161,000, your contribution is reduced. Those with incomes of $161,000 or more cannot make contributions.
  • Married filing jointly or qualifying widow or widower: If your income is $230,000 or less, you can contribute $7,000 or $8,000 if you are 50 or older. Those with incomes greater than $230,000 but less than $240,000 can contribute a reduced amount, and filers earning $240,000 or more cannot contribute.
  • Married filing separately: Those making less than $10,000 can make a reduced contribution. If you make $10,000 or more, you cannot contribute.

Traditional IRA

If you have a traditional IRA, you can deduct the contributions you make as long as you or your spouse are not covered by a workplace retirement plan.

Those covered by a workplace retirement plan can contribute $7,000 or $8,000 if they are 50 years old or older and meet the following deduction limits:

  • Single or head of household: People who make $77,000 or less can fully deduct. If you make more than $77,000 but less than $87,000, you can partially deduct. There is no deduction opportunity for incomes of $87,000 or more.
  • Married, filing jointly: If you make $123,000 or less, you can fully deduct. Those earning over $123,000 but less than $143,000 can partially deduct. A couple earning more than $143,000 cannot deduct their contribution.
  • Married, filing jointly, with spouse workplace plan: If you are not covered by a workplace retirement plan but your spouse is, the numbers change — you can fully deduct your contribution if you make $230,000 or less. A partial deduction applies if you earn more than $230,000 but less than $240,000, and you cannot deduct anything if you make $240,000 or more.
  • Married, filing separately: If you make less than $10,000, you can partially deduct your contribution. If you make $10,000 or more, you cannot deduct.

There are no deduction limits if neither you nor your spouse are covered by a workplace plan — you can fully deduct the maximum contribution with no income restrictions. Similarly, if you are filing as single, head of household, or qualifying widow or widower, you can fully deduct your contribution, regardless of income.

deduct contributions

Remember that you cannot contribute more to your IRAs — either Roth or traditional — than you earn in income each year, hence the reduced contributions for people earning less than $10,000.

SEP and SIMPLE IRA Defined Contribution Limits for 2024

If you are self-employed or own a small business, you may have a SEP plan or a SIMPLE IRA. Both IRA types have unique requirements and advantages, but no matter which one you have, you should be aware of the updated contribution limits in 2024.


SEP IRA contribution limits have changed in a few ways:

  • Employers: If you’re an employer with a SEP IRA, you can contribute a maximum of $69,000 or 25% of an employee’s salary, whichever is less, in 2024. Note that as an employee, you may be able to contribute to the SEP IRA as you would a traditional IRA, so your maximum contribution would be $7,000 or $8,000 if you are 50 years old or older.
  • Employees: Those with SEP IRAs as self-employed individuals can contribute up to 25% of their net incomes. For 2024, the eligible compensation limit has increased to $345,000, up from $330,000.

In both situations, contributions are tax-deductible.


In 2024, SIMPLE IRA contribution limits increase in three out of four categories:

  1. For employees under the age of 50, employee salary reduction contributions increase to a maximum of $16,000, up from $15,500.
  2. The 2024 compensation limit for figuring 2% nonelective employer contributions is $345,000, which is $15,000 more than in 2023.
  3. The maximum in salary reduction contributions across multiple employer plans is now $23,000, an increase of $500.

The only type of contribution limit that doesn’t see an increase is catch-up contributions, which remain $3,500.

IRA Contribution Tips to Keep in Mind

As you head into the 2024 tax season, you should have a plan ready. The right approach will ensure you can contribute as much as possible to your IRA without going over any limits. Whether you have a self-directed IRA or a combination of personal and workplace plans, consider the following tips for IRA financial planning in 2024:

  • Understand IRA limit provisions: Review your income and tax filing status to see how much you can contribute and whether you can deduct any part of your contribution. Remember that age matters, too. If you’ll be 50 in the 2024 tax season, you can up your contribution to $8,000.
  • Avoid contributing more than you’re allowed: Avoid going over contribution limits. While you can remove the extra contributions and earnings by the tax deadline, you’ll want to avoid making that mistake in the first place. Failing to take out the excess contributions means you’ll have to pay a 6% tax every year they remain in the IRA.
  • Work with an IRA professional: There’s no denying that managing your finances can be tricky, especially if you’re a small business owner with dozens of employees or your situation has recently changed. Whenever you need assistance regarding your IRA, reach out to an expert for guidance and clarity. This way, you can make the best decisions for your financial future.

Learn More About IRA Contribution Limits From Accuplan Benefits Services

At Accuplan Benefits Services, we have years of experience helping individuals and businesses understand and manage their IRAs. Whether you have questions about the basics of your retirement account or need input about specific investing laws, our supportive team is always here to offer advice.

Explore our self-directed IRA options and business retirement plans today. Questions about the 2024 contribution limits and how they might affect you? Contact us at 1-800-454-2649.

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Our information shouldn’t be relied upon for investment advice but simply for information and educational purposes only. It is not intended to provide, nor should it be relied upon for accounting, legal, tax or investment advice.

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