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Traditional IRA Contribution Limits For 2024 & 2025

The article from Forbes discusses the contribution limits for Traditional Individual Retirement Accounts (IRAs) for the year 2023. It outlines that the maximum contribution limit for individuals under 50 years old is $6,500, while those aged 50 and above can make an additional catch-up contribution of $1,000, bringing their total to $7,500. The piece explains that these limits are set by the IRS and are subject to change annually due to inflation adjustments. It also covers the income limits for tax-deductible contributions, noting that the ability to deduct contributions depends on whether an individual or their spouse is covered by a retirement plan at work, and their modified adjusted gross income (MAGI). For single filers covered by a workplace plan, the deduction begins to phase out at a MAGI of $73,000 and is completely phased out at $83,000. For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace plan, the phase-out range is from $116,000 to $136,000. The article emphasizes the importance of understanding these limits and rules to maximize retirement savings effectively.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/investor-hub/article/traditional-ira-contribution-limits/ ]