You may still have time to save before filing your 2024 tax return. Here’s how: you can still fund your Traditional IRA before April 15th, and have it still count for 2023. However, in order for it to be deductible, there are certain rules you have to meet (remember, the IRS loves rules).
Roth IRA Contributions
First things first, Roth IRA contributions are not deductible, but if you want to learn more about them, here’s a link.
Traditional IRA Contributions
Your IRA contributions is deductible based on two factors: do you already fund a retirement plan at work (are you covered at work) and how much money do you make.
2024 IRA Deduction Limits
No Retirement Plan at Work
If neither you or your spouse have a retirement plan that you fund at work, you can fund the maximum amount to a Traditional IRA, and it will be deductible. To see the maximum amounts you can fund, go here.
You Have a Retirement Plan at Work
If you or your spouse already have a retirement plan that you fund as part of your job, then you can only get a deduction if you make under a certain amount of money. Here are charts based on if you are married, single, and if you or your spouse are already covered by a retirement plan at work.
| Filing Status | 2024 Income Limit | Deduction |
|---|
| Single (you’re covered at work) | $77,000 or less | Full Deduction ($7,000) |
| $77,001 to $87,000 | Partial Deduction | |
| $87,000 or more | No Deduction |
| Filing Status | 2024 Income Limit | Deduction |
|---|
| Married (both of you are covered at work) | $123,000 or less | Full Deduction ($7,000 each) |
| $123,001 to $143,000 | Partial Deduction | |
| Over $143,000 | No Deduction |
If you are not covered by a retirement plan at work but your spouse is, there is still a limit on your deduction.
| Filing Status | 2022 Income Limit | Deduction |
|---|
| Married (but only one of you is covered by a retirement plan) | $230,000 or less | Full Deduction ($7,000) |
| $230,001 to $240,000 | Partial Deduction | |
| Over $240,000 | No Deduction |
Conclusion
If you don’t have a retirement plan at work, you have until April 15th to fund an IRA and keep more money away from the IRA. If you do have a retirement plan at work, it’s best if you check with your CPA to see if your IRA contribution is deductible.