The IRA contribution deadline for 2024 is fast approaching! You have until April 15, 2025, to fund your Traditional or Roth IRA—potentially reducing your tax bill and growing your retirement savings.
If you had earned income in 2024, you can contribute up to:
You may also be able to contribute to a spousal IRA, even if your spouse had no earned income.
A Traditional IRA allows tax-deductible contributions, depending on your income and whether you have a workplace retirement plan.
For 2024, you can take a full deduction if:
Partial deductions are available for incomes up to:
If your spouse has a workplace plan but you do not, you can still deduct contributions with a MAGI of $230,000 or less (phasing out at $240,000).
A Roth IRA is an excellent option if you earn too much for deductible Traditional IRA contributions. While Roth contributions are not tax-deductible, withdrawals in retirement can be completely tax-free if you meet eligibility rules.
For 2024, you can contribute to a Roth IRA if your income is within these limits:
If you exceed Roth IRA income limits, consider a backdoor Roth IRA. This involves making a non-deductible Traditional IRA contribution and converting it to a Roth IRA. However, be aware of tax implications if you have existing IRA balances.
Funding an IRA before April 15, 2025, could help lower your 2024 tax bill and boost your retirement savings. You may also qualify for the Saver’s Credit, which provides an additional tax benefit for eligible filers.
Not sure whether a Traditional IRA or Roth IRA is right for you? The team at Samalin Wealth is here to help. Contact us today for a personalized retirement strategy that fits your financial goals.