October 2024
On November 1, 2024, the IRS announced the 2025 IRA and pension limits. These are set forth in Notice 2024-80. The inflation rate year over year for the quarter ending September 30, 2024 was 2.4%.
The IRA contribution limit (traditional and Roth) for 2025 remains at $7,000. So, the maximum contribution limit will be $7,000 for an individual under age 50 and $8,000 for an individual age 50 or older.
The income limits applying to making a deductible contribution increased as did the Roth IRA eligibility limits. More individuals who are active participants will be eligible to claim a tax deduction for their traditional IRA contribution and more individuals will be eligible to make a Roth IRA contribution.
The limits for SEP-IRAs, and SIMPLE-IRAs plans also increased. The maximum SEP-IRA contribution limit will be $70,000 up from $69,000. The deferral limits for SIMPLE-IRAs also increased.
IRA Contribution limits for a person who is not age 50 or older.
For Tax Year 2023 it was $6,500
For Tax Years 2024-2025 it is $7,000
IRA Contribution Limits for a person who is age 50 or older.
For Tax Year 2023 it was $7,500
For Tax Years 2024-2025 it is $8,000
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