Roth IRA Contribution Calculator (2024)
Your Estimated 2024 Roth IRA Contribution Eligibility:
Maximum Contribution: $7,000
Based on your age and Modified Adjusted Gross Income, you are eligible to contribute the full amount to a Roth IRA for 2024.
These calculations are based on 2024 IRS contribution limits and phase-out ranges. Consult a financial advisor for personalized advice.
Understanding Your Roth IRA Contribution Limits
A Roth IRA is a powerful retirement savings vehicle that allows your investments to grow tax-free, and qualified withdrawals in retirement are also tax-free. Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, meaning you don't get an upfront tax deduction. However, the long-term benefit of tax-free growth and withdrawals can be substantial.
Key Factors Affecting Your Roth IRA Contributions
The amount you can contribute to a Roth IRA each year is determined by several factors, primarily your age and your Modified Adjusted Gross Income (MAGI), as well as your tax filing status. The IRS sets annual limits that can change from year to year. Our calculator uses the 2024 IRS limits to provide an accurate estimate.
1. Contribution Limits by Age:
- Under Age 50: For 2024, individuals under 50 can contribute up to $7,000.
- Age 50 and Over: If you are age 50 or older, you are eligible for a "catch-up" contribution, allowing you to contribute an additional $1,000, for a total of $8,000 in 2024.
2. Modified Adjusted Gross Income (MAGI) Phase-Outs:
Even if you meet the age requirements, your ability to contribute to a Roth IRA can be limited or eliminated entirely if your MAGI exceeds certain thresholds. This is known as the "phase-out" range. If your MAGI falls within this range, your maximum contribution amount is reduced. If it exceeds the upper limit of the range, you may not be able to contribute directly to a Roth IRA at all.
For 2024, the MAGI phase-out ranges are:
- Single, Head of Household, or Married Filing Separately (if you lived apart from your spouse for the entire year):
- Full contribution: MAGI less than $146,000
- Partial contribution: MAGI between $146,000 and $161,000
- No direct contribution: MAGI $161,000 or more
- Married Filing Jointly or Qualifying Widow(er):
- Full contribution: MAGI less than $230,000
- Partial contribution: MAGI between $230,000 and $240,000
- No direct contribution: MAGI $240,000 or more
- Married Filing Separately (if you lived with your spouse at any time during the year):
- Partial contribution: MAGI between $0 and $10,000
- No direct contribution: MAGI $10,000 or more
How to Use the Calculator:
- Enter Your Current Age: Input your age as of the end of the contribution year.
- Enter Your Annual Modified Adjusted Gross Income (MAGI): This is a crucial figure. Your MAGI is your adjusted gross income (AGI) with certain deductions added back. If you're unsure of your MAGI, consult a tax professional or your tax software.
- Select Your Tax Filing Status: Choose the status you will use when filing your taxes for the contribution year.
- Click "Calculate Max Contribution": The calculator will instantly display your estimated maximum eligible Roth IRA contribution for 2024.
What if You're Phased Out? The "Backdoor Roth"
If your MAGI is too high to contribute directly to a Roth IRA, you might still have an option: the "backdoor Roth" strategy. This involves contributing to a Traditional IRA (which has no income limits for non-deductible contributions) and then converting those funds to a Roth IRA. This strategy can be complex and has specific tax implications, especially if you have existing pre-tax IRA funds (the "pro-rata rule"). It's highly recommended to consult with a qualified financial advisor or tax professional before attempting a backdoor Roth.
This calculator provides a helpful estimate based on current IRS rules. For personalized financial planning and tax advice, always consult with a professional.