Last-Minute IRA Contributions: There's Still Time for 2024
Did you know you can still make IRA contributions for 2024? Even though the calendar has turned to 2025, you have until Tax Day (April 15, 2025) or until you file your taxes, whichever comes first, to make your IRA contribution for the previous year.
Contribution Limits for 2024 For 2024, you can contribute up to $7,000 to your IRA if you're under age 50. If you're 50 or older, you can make an additional catch-up contribution of $1,000, bringing your total limit to $8,000.
Key Requirements to Contribute
- You (or your spouse) must have earned income at least equal to your contribution
- Your ability to deduct traditional IRA contributions may be limited if you or your spouse are covered by a retirement plan at work
- For Roth IRAs, your ability to contribute may be limited by your income level
For Roth IRAs in 2024: Single filers can make full contributions if their modified adjusted gross income (MAGI) is less than $146,000, with contributions phasing out up to $161,000. For married couples filing jointly, the phase-out range is $230,000 to $240,000.
Making Your Contribution
When making your contribution, be sure to specify which tax year you're contributing for. Your IRA provider will need this information to properly report your contribution to the IRS.
Remember, making retirement contributions earlier rather than later gives your money more time to potentially grow through compound interest. While you have until Tax Day 2025 to make your 2024 contribution, consider making your 2025 contributions throughout the year if you're able.
Need help determining which type of IRA is right for you or understanding your contribution limits? We're here to help you make informed decisions about your retirement savings strategy.
