Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income with certain deductions added back in (like student loan interest). It determines your eligibility for IRA tax benefits.

Can I contribute to both a Roth and a Traditional IRA in the same year?

Yes, but your combined total contributions cannot exceed your annual limit ($7,000 or $8,000 depending on age).

What happens if I earn too much to contribute to a Roth IRA?

If your income exceeds the IRS limits, you cannot contribute directly to a Roth IRA. However, you may be able to use a 'Backdoor Roth' strategy by contributing to a non-deductible Traditional IRA and then converting it to a Roth.

Finance

IRA Contribution Calculator (2024 Rules)

Calculate your maximum Roth and Traditional IRA contribution limits for 2024 based on your age, MAGI, and tax filing status.

Your Information (2024 Tax Year)

Your Age

Filing Status

Modified Adjusted Gross Income (MAGI)

Covered by a workplace retirement plan (e.g., 401k)

Max Total IRA Contribution limit

$0.00

Roth IRA Limit

$0.00

Traditional IRA (Tax-Deductible)

$0.00

Traditional IRA (Non-Deductible)

$0.00

Note: You can mix and match between Traditional and Roth, but your combined contributions cannot exceed the total limit.

IRA Contribution Limits

Your maximum contribution limit is determined by your age. Your ability to contribute directly to a Roth IRA or deduct Traditional IRA contributions is limited by your Modified Adjusted Gross Income (MAGI).

 Total Limit = Base Limit + Catch-up Contribution (if age 50+) 

Base Limit For 2024, the base limit is $7,000.
Catch-up For those age 50 and older, an additional $1,000 is allowed.

Maximizing your Individual Retirement Account (IRA) contributions is one of the most effective ways to build wealth for the future. However, navigating the IRS rules surrounding contribution limits, tax deductions, and income phase-outs can be confusing. Use our IRA Contribution Calculator to determine exactly how much you are allowed to contribute to a Roth or Traditional IRA in 2024 based on your specific financial situation.

2024 IRA Contribution Limits

The IRS adjusts IRA contribution limits periodically to account for inflation. For the 2024 tax year, the limits are:

Under Age 50: The maximum total contribution you can make across all your IRAs is $7,000.
Age 50 and Older: You are eligible for a $1,000 “catch-up” contribution, raising your maximum total limit to $8,000.

Note: You must have earned income (e.g., from a job or self-employment) at least equal to your contribution amount.

Understanding Income Phase-Outs

While the baseline contribution limits apply to everyone with earned income, your Modified Adjusted Gross Income (MAGI) determines what type of IRA contributions you can make. The IRS enforces strict income limits to ensure these tax-advantaged accounts primarily benefit low- and middle-income earners.

Roth IRA Income Limits

Roth IRAs are funded with after-tax dollars, and qualified withdrawals are entirely tax-free. Because this is such a powerful benefit, high earners are restricted from contributing directly.

For 2024, the Roth IRA phase-out ranges are:

Single Filers: $146,000 to $161,000. If your MAGI is above $161,000, you cannot contribute directly.
Married Filing Jointly: $230,000 to $240,000.

If your income falls within the phase-out range, your allowed contribution is proportionally reduced.

Traditional IRA Deduction Limits

Anyone with earned income can contribute to a Traditional IRA, regardless of how much they make. However, whether you can deduct that contribution from your current-year taxes depends on your MAGI and whether you or your spouse are covered by a workplace retirement plan (like a 401(k)).

If you are covered by a workplace plan in 2024:

Single Filers: The deduction phases out between $77,000 and $87,000 MAGI.
Married Filing Jointly: The deduction phases out between $123,000 and $143,000 MAGI.

If you earn above these limits, you can still contribute to a Traditional IRA, but it will be a “non-deductible” contribution.

The Backdoor Roth Strategy

If your income is too high to contribute to a Roth IRA directly, and you cannot deduct a Traditional IRA contribution, you may want to consider a strategy known as the “Backdoor Roth IRA.”

This involves making a non-deductible contribution to a Traditional IRA, and then shortly thereafter converting that Traditional IRA into a Roth IRA. While the rules surrounding this can be complex (especially if you have existing pre-tax IRA balances due to the “pro-rata rule”), it is a legal and common method for high earners to access tax-free Roth growth. Always consult a tax professional before attempting advanced tax strategies.

Long-Term Financial Planning Strategies

According to the Federal Reserve, 2024 reports indicate that consistent long-term planning is critical for financial stability. When dealing with complex financial decisions, it is incredibly important to view your entire financial picture holistically. Many individuals focus solely on immediate gains or short-term costs, missing the compounding effects of long-term strategy.

A comprehensive financial plan should always account for unexpected variables, such as market volatility, inflation, and changes in personal circumstances. By understanding the underlying mathematical principles that drive these calculations, you empower yourself to make significantly better decisions. Remember that the outputs from these calculators are estimates based on your inputs and standardized formulas, and they assume constant rates over time, which rarely happens in reality.

Always regularly review your financial goals and adjust your strategies as necessary. It is highly recommended to consult with a certified financial planner or tax advisor before making any major financial commitments to ensure your plan aligns with your unique needs.

Related calculators

Roth Ira Calculator Traditional Ira Calculator Retirement Calculator

Results are estimates for educational purposes only and may not reflect all factors in your specific situation. This is not financial advice. Consult a qualified financial adviser for personalised guidance.