2024 IRA Contribution Limit Updates
Written By: Daniel Gleich
Key Points
- The IRS has increased the limit of contributions and benefits to IRA accounts, including Self-Directed IRAs (SDIRAs).
- This modification in limitation is amended under SECURE ACT 2.0 to match the annual cost-of-living adjustment.
Change continues to be a theme as we embark on each new year, and this one is no different. Regarding the 2024 IRA contribution limits, it seems the changes are in investors’ favor. It’s time to consider rearranging your retirement savings budget and potentially implement the IRA contribution limit raise.
The Potential for Growth Surges with These 2024 IRA Contribution Limits
The annual IRA contribution limit will increase from $6,500 to $7,000 as of 2024. For those aged 50 and older, you remain eligible for the amended SECURE ACT 2.0 catch-up contribution. This allows you to give an additional $1,000, granting a contribution of up to $8,000 per year.
Good news for investors with an existing Self-Directed Roth IRA, or prospective investors who plan on opening a Roth IRA during 2024. In addition to not having to partake in required minimum distributions, the IRA will no longer need to participate in withdrawals until after the owner has passed. This only adds to the ever-growing list of benefits for acquiring a Self-Directed Roth IRA.
Other Factors to Consider
Aside from the 2024 IRA contribution limits, Traditional IRA AGI Deduction Phase-outs will be starting at $123,000 for couples who file jointly, and $77,000 for single filers and head of the household. It’s considered good practice to make note of this if you have a partner and usually file separately. Through planning and deliberation, you can determine if it possibly makes more sense to file jointly or as single entities.
There’s No Time Like the Present to Prepare for Your Future
If you’re ready to start saving for retirement, investing in an alternative asset may be a fitting choice. Get educated on how a Self-Directed IRA can work for you, and how you can start utilizing these IRA contribution limits today!