IRAs come with limits on how much you can contribute per year. Roth IRAs also have income limits. Here’s a breakdown of the rules.
Traditional and Roth IRA Contribution Limits for 2023
- If you're under 50, you can contribute a total of up to $6,500 per year across all of your traditional and Roth IRA accounts, if your taxable income was greater than $6,500 for the year.
- If you're over 50, or will be turning 50 by the end of the year, you can contribute up to $7,500 across all of your traditional and Roth IRA accounts, if your taxable income was greater than $7,500 for the year.
- If your income was less than $6,500 (or $7,500 if you're 50 or older) in a given year, you can only contribute up to the amount you received in taxable compensation.
Traditional and Roth IRA Contribution Limits for 2024
- If you’re under 50, you can contribute a total of up to $7,000 per year across all of your traditional and Roth IRA accounts, if your taxable income was greater than $7,000 for the year.
- If you’re over 50, or will be turning 50 by the end of the year, you can contribute up to $7,000 across all of your traditional and Roth IRA accounts, if your taxable income was greater than $7,000 for the year.
- If your taxable income was less than $7,000 (or $8,000 if you’re 50 or older) in a given year, you can only contribute up to the amount you received in taxable compensation.
Income Restrictions for Roth IRAs
- Based on your income and filing status, you may not be eligible to contribute to a Roth IRA, or may only be able to contribute a reduced amount.
- For more detailed information, please refer to the IRS guidelines for the applicable contribution year.
SEP IRA Contribution Limits
For single employee sole proprietorships (meaning you are the only employee at your company), the contribution limits for SEP IRAs vary depending upon business revenues and your salary.
The current annual maximum is the lesser of:
-
- 25% of the employee's compensation, or
- $69,000 for 2024 ($66,000 for 2023, $61,000 for 2022, and $58,000 for 2021)
Ellevest and Goldman Sachs Custody Solutions will cap your contributions to your Ellevest SEP IRA at $66,000 for contributions associated with 2023 tax filings but it is up to you (and your accountant) to determine the specific contribution and deduction limits that apply to you. You can find more details on the IRS website.
If you have a recurring deposit set up into your IRA and your next deposit will take you over your annual contribution limit, Ellevest will cancel this recurring deposit.
To see how much you've already contributed to your Ellevest IRAs, click here.
Interested in learning more? Connect with one of our CERTIFIED FINANCIAL PLANNER™ professionals for a complimentary consultation at a time that works best for your schedule. We only need 15 minutes of your time to talk through some of your priorities, financial goals, and money-related questions.
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