IRA Contribution Calculator
Calculate your maximum IRA contribution, deductibility, and tax savings. 2024 limits: $7,000 base, $1,000 catch-up for 50+.
Why This Matters for Your Finances
Why: Understanding IRA limits and deductibility helps maximize tax-advantaged savings. Phase-out rules apply if covered by a workplace plan.
How: Enter income, age, filing status, and whether you have a 401(k). The calculator shows max contribution, deductible amount, and tax savings.
- โRoth IRA when phase-out limits deduction
- โSpousal IRA for non-working spouse
- โBackdoor Roth for high earners
IRA Contribution Calculator
Limits โข Deductibility โข Tax savings
Sample Scenarios โ Click to Load
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Tax Savings
Max: $7,000, Deductible: $7,000
โ ๏ธFor educational and informational purposes only. Verify with a qualified professional.
๐ก Money Facts
2024 IRA base limit
โ IRS
Catch-up for 50+
โ IRS
๐ Key Takeaways
- โข Consider Roth IRA if deduction is limitedโtax-free growth may outweigh upfront deduction
- โข Spousal IRA available for non-working spouseโdouble the contribution capacity
- โข Backdoor Roth for high earners: contribute to non-deductible IRA then convert
- โข Contribute early in the year for more tax-deferred growth
๐ก Did You Know?
๐ How IRA Deductibility Works
Traditional IRA contributions may be deductible. If you are not covered by a workplace plan, full deduction. If covered, deduction phases out based on MAGI and filing status. Roth IRA has no deduction but offers tax-free withdrawals.
Tax Savings
Tax Savings = Deductible Amount ร Marginal Tax Rate
Phase-Out
Partial deduction = Max ร (Phase-out end โ MAGI) / Phase-out range
๐ฏ Expert Tips
๐ก Roth When Phase-Out
If deduction is limited, Roth may be betterโtax-free growth vs. small upfront tax break.
๐ก Spousal IRA
Married filing jointly? Contribute for non-working spouseโup to $7K each (2024).
๐ก Backdoor Roth
High earners: contribute to non-deductible IRA, convert to Roth. Watch pro-rata if you have other IRA assets.
๐ก Contribute Early
Contribute in January for a full year of tax-deferred growth vs. waiting until April.
โ๏ธ Traditional vs Roth IRA
| Factor | Traditional | Roth |
|---|---|---|
| Deduction | Maybe (income limits) | No |
| Withdrawals | Taxable | Tax-free |
| RMDs | Yes at 73 | None |
| Income limit | No (for contribution) | Yes (for direct) |
โ Frequently Asked Questions
What is MAGI?
Modified Adjusted Gross Incomeโused for IRA deduction and Roth eligibility. Generally AGI plus some add-backs.
Can I contribute to both 401(k) and IRA?
Yes. 401(k) and IRA limits are separate. You can max both.
When is the IRA contribution deadline?
Tax filing deadline (typically April 15) for the prior year. You can contribute for 2024 until April 15, 2025.
What is the pro-rata rule?
When converting to Roth, if you have pre-tax IRA money, the conversion is taxed proportionally.
Can I deduct IRA if I have a 401(k)?
It depends on income. Phase-out applies. Single: $77Kโ$87K; Married: $123Kโ$143K (2024).
What is a spousal IRA?
A contribution to an IRA for a non-working spouse. The working spouse must have enough income to cover both.
๐ IRA by the Numbers
๐ Official Data Sources
- โข IRS Pub 590-A โ IRA contributions
- โข IRS.gov โ Limits and phase-outs
- โข CFP Board โ IRA strategies
โ ๏ธ Disclaimer: This calculator provides estimates. IRA rules and limits change annually. Consult a tax professional for your situation.