Caution:
The amount of any contribution eligible for the saver's credit may be reduced by any taxable distributions you (or your spouse if you file a joint return) receive from an IRA or employer-sponsored retirement plan (or any nontaxable distributions from a Roth IRA) during the same tax year, during the period for filing your tax return for that year (including extensions), or during the prior two years. | | IRA Limits and Saver's Credit TablesRoth IRA contribution limits for 2024| If your federal income tax filing status is: | Your Roth IRA contribution is reduced if your MAGI is between: | You cannot contribute to a Roth IRA if your MAGI is: |
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| Single or head of household | $146,000 and $161,000 | $161,000 or more |
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| Married filing jointly or qualifying widow(er) | $230,000 and $240,000 (combined) | $240,000 or more (combined) |
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| Married filing separately | $0 and $10,000 | $10,000 or more |
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These income ranges (other than married filing separately) are indexed for inflation each year. Traditional IRA deduction limits for 2024If you are covered by an employer-sponsored retirement plan and your MAGI exceeds certain established thresholds, your deduction for your traditional IRA contribution is reduced or eliminated as follows: | If your federal income tax filing status is: | Your IRA deduction is reduced if your MAGI is between: | Your deduction is eliminated if your MAGI is: |
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| Single or head of household | $77,000 and $87,000 | $87,000 or more |
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| Married filing jointly or qualifying widow(er)* | $123,000 and $143,000 (combined) | $143,000 or more (combined) |
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| Married filing separately | $0 and $10,000 | $10,000 or more |
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* If you're not covered by an employer plan, but your spouse is, your deduction is limited if your MAGI is between $230,000 and $240,000, and eliminated if your MAGI is $240,000 or more (combined). Low and middle-income taxpayers may qualify for a tax credit
To claim the credit, you must be at least 18 years old and not a full-time student or a dependent on another taxpayer's return. The credit is in addition to any income tax deduction you might qualify for with respect to your IRA contribution. The amount of the credit is 50%, 20%, or 10% of your IRA or retirement plan contributions up to $2,000 ($4,000 if married filing jointly), depending on your MAGI. Here are the credit rates based on 2024 MAGI limits: | Joint Filers | Heads of Household | Single Filers | Credit Rate |
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| $0 - $46,000 | $0 - $34,500 | $0 - $23,000 | 50% of contribution | | $46,001 - $50,000 | $34,501 - $37,500 | $23,000 - $25,000 | 20% | | $50,001 - $76,500 | $37,501 - $57,375 | $25,001 - $38,250 | 10% | | Over $76,500 | Over $57,375 | Over $38,250 | 0% |
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