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2024 IRA Contribution Limits: How Much Can You Save and When?

March 25, 2024

Are you looking to boost your retirement savings in 2024? Individual Retirement Accounts (IRAs) offer a tax-advantaged way to save for your future. This post will guide you through the 2024 IRA contribution limits and deadlines, helping you maximize your contributions and plan for a secure future.

How Much Can You Contribute in 2024?

The good news is the IRA contribution limit for 2024 has increased to $7,000 for individuals under the age of 50. If you're 50 or older, you can take advantage of a catch-up contribution of an additional $1,000, bringing your total limit to $8,000.

Important Note: These contribution limits are set by the IRS and may be subject to change in future years. It's always a good idea to check with the IRS website or your financial advisor for the latest information.

When Can You Contribute for 2024?

You have flexibility when it comes to contributing to your IRA for a specific tax year. Unlike some employer-sponsored retirement plans, contributions for 2024 can be made anytime between January 1, 2024, and the tax filing deadline (including extensions) in 2025. This gives you until April 15, 2025 to contribute towards your 2024 IRA.

Benefits of IRAs and How They Fit into Your Retirement Plan

IRAs offer several advantages for retirement savings:

  • Tax Advantages: Traditional IRA contributions may be tax-deductible, lowering your taxable income for the year. Roth IRA contributions are made with after-tax dollars, but qualified withdrawals in retirement are typically tax-free. As always, consult your tax professional to see how this applies to your situation.
  • Investment Flexibility: IRAs offer a wide range of investment options, allowing you to tailor your portfolio to your risk tolerance and retirement goals.
  • Long-Term Growth Potential: By contributing regularly and allowing your investments to compound over time, IRAs can significantly boost your retirement nest egg.

Taking the Next Step

If you're interested in learning more about IRAs and how they can fit into your overall retirement plan, consult with your financial advisor. They can help you determine the right type of IRA for your needs, choose suitable investments, and develop a personalized strategy for a secure retirement. Don’t have a financial advisor? Give us a call!