Roth IRA Contributions

Did you know that if you have not contributed to your Roth IRA for the 2024 tax year, you can still contribute up to Tax Day 2025 if you are eligible?

What is the Contribution Deadline? The deadline to contribute to a Roth IRA for 2024 is the tax-filing deadline (April 15, 2022).

What are the Contribution Limits? The maximum annual contribution in 2024 is $7,000, or $8,000 if you are 50 or older.

The same combined contribution limit applies to all your Roth and Traditional IRAs . This means that the $7,000 (or $8,000 if you are 50 and above) is aggregate. You can contribute to one or both, but the total contribution must not exceed that limit.

Who is eligible to Contribute? Keep in mind that there are income limits that restrict who can contribute. Those income limits are based on your modified adjusted gross income (MAGI). If your income falls into the Roth IRA phase-out range, your maximum contribution decreases and may be eliminated.

To figure out your modified adjusted gross income (MAGI), take your adjusted gross income (AGI) and add back in any of the following deductions or exclusions?if you took them:

• Deduction for traditional IRA contributions.
• Deduction for student loan interest.
• Deduction for foreign housing.
• Exclusion for foreign earned income/housing.
• Exclusion for savings bond interest.
• Exclusion for employer-provided adoption benefits.

Keep in mind that many of these deductions are rare, so it’s possible your AGI and MAGI can be identical. Be sure to check with your CPA or financial planner to see if these might apply to you. Note: See?IRS Publication 590-A , Worksheet 2-1, for instructions on figuring MAGI for Roth IRAs.

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This post is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor for personalized advice.

Mountain West IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If accounting, tax, legal, investment, or other similar expert assistance is required, the services of a competent professional should be sought.