Traditional IRA Contribution Details
- Individuals: $7,000 for 2024 and 2025, or 100% of earned income (whichever is less).
- Over 50? Make additional "catch-up" contributions of $1,000 for 2024 and 2025.
- To be eligible for the "catch-up" you must have reached age 50 on or before December 31 of the year for which the contribution is being made.
- Your contribution cannot exceed your earned income for that tax year.
Roth IRA Contribution Details
The amount you can invest to a Roth IRA depends on how much modified adjusted gross income (MAGI) you earn and the contribution limits set by the IRS. These limits can change each year. Also, if you have reached age 50 on or before December 31 of the year in which the contribution is being made, you may be eligible to contribute an additional amount called a “catch-up” contribution of $1,000. However, your Roth IRA contribution can’t exceed your earned income for that tax year. The maximum eligible contribution is $7,000 for 2024 and 2025.
Please refer to the Roth IRA tax year contribution limits to determine if you are eligible to contribute. Your exact contribution amount can be calculated using the worksheets found in IRS Publication 590.
Tax Year 2024 Contribution Limits for Roth IRAs
Modified Adjusted Gross Income
| Single Filers | Married Filing Jointly | You can make... |
|---|---|---|
| under $146,000 | under $230,000 | the maximum contribution of $7,000 for the tax year 2024 |
| $146,000 - $160,999 | $230,000 - $239,999 | a partial contribution, refer to IRS Publication 590-A for calculation |
| $161,000 and over | $240,000 and over | no contribution |
Individuals age 50 and older:
A catch-up contribution of $1,000 in tax year 2024 and 2025 may be available.
Source: www.irs.gov
Tax Year 2025 Contribution Limits for Roth IRAs
Modified Adjusted Gross Income
| Single Filers | Married Filing Jointly | You can make... |
|---|---|---|
| under $150,000 | under $236,000 | the maximum contribution of $7,000 for the tax year 2025 |
| $150,000 - $164,999 | $236,000 - $245,999 | a partial contribution, refer to IRS Publication 590-A for calculation |
| $165,000 and over | $246,000 and over | no contribution |
Individuals age 50 and older:
A catch-up contribution of $1,000 in tax year 2024 and 2025 may be available.
Source: www.irs.gov
SEP IRA Contribution Details
- The employer contribution to the account may not exceed the lesser of 25% of the employee's compensation or $69,000 for 2024 and $70,000 for 2025.
- Employees who are part of the plan may also make annual IRA contributions of up to $7,000 for 2024 and 2025, or 100% of their compensation, whichever is less. If age 50 or older, a "catch-up" of $1,000 may be available.
- Are you and your spouse covered by a workplace retirement plan? Your contributions may be deductible and are governed by Traditional IRA contribution rules.
SARSEP IRA Contribution Details
- No new SARSEP IRA plans are permitted after 1996. The contribution limits detailed here are for informational purposes.
- The employer contribution to the account may not exceed the lesser of 25% of the employee's compensation or $69,000 for 2024 and $70,000 for 2025.
- Employee contributions typically comply with employee salary reduction agreements and must not exceed $23,000 for 2024 and $23,500 for 2025.
- Catch-up contributions apply if the employee is 50 or older by the end of the calendar year. There is a maximum catch-up contribution of $7,500 for 2024 and 2025.
- In addition, the employee may use this same account to make annual IRA contributions. The maximum contribution is $7,000 for 2024 and 2025. The "catch-up" of $1,000 may be available to individuals age 50 or older.
- Are you and your spouse covered by a workplace retirement plan? Your contributions may be deductible and are governed by Traditional IRA contribution rules.
Defined contribution plan contribution details
A defined contribution plan is an employer-sponsored retirement plan that allows employer contributions to be made for employees based on a percentage of the employee's compensation.
Under a defined contribution plan, the maximum annual contribution on behalf of any plan participant may not exceed the lesser of 100% of his or her compensation or $69,000 for 2024 and $70,000 for 2025. The defined contribution plans offered by Janus Henderson include:
Profit Sharing Plan
- A qualified retirement plan that calculates employer contributions as a percentage of each eligible employee's compensation.
- Annual employer contributions are discretionary.
Money Purchase Pension Plan
- A qualified retirement plan that calculates employer contributions as a percentage of each eligible employee's compensation.
- Annual employer contributions are required.
Tax deductibility of traditional IRA contributions
For participants covered by an employer-sponsored retirement plan
Tax Year 2024
Modified Adjusted Gross Income
| Single Filers | Married Filing Jointly or qualifying widow(er) | Married filing separately | For the non-working or not covered spouse, if the joint AGI is... | Then you can take... | |
|---|---|---|---|---|---|
| $77,000 or less | $123,000 or less | under $230,000 | A full deduction up to the amount of your contribution limit | ||
| More than $77,000 and less than $87,000 | More than $123,000 and less than $143,000 | Less than $10,000 | $230,000 - $240,000 | A partial deduction | |
| $87,000 or more | $143,000 or more | $10,000 or more | $240,000 and over | No deduction | |
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “Single” filing status. | |||||
Individuals age 50 and older:
A catch-up contribution of $1,000 in tax year 2024 and 2025 may be available.
Source: www.irs.gov
Tax Year 2025
Modified Adjusted Gross Income
| Single Filers | Married Filing Jointly or qualifying widow(er) | Married filing separately | For the non-working or not covered spouse, if the joint AGI is... | Then you can take... | |
|---|---|---|---|---|---|
| $79,000 or less | $126,000 or less | under $236,000 | A full deduction up to the amount of your contribution limit | ||
| More than $79,000 and less than $89,000 | More than $126,000 and less than $146,000 | Less than $10,000 | $236,000 - $246,000 | A partial deduction | |
| $89,000 or more | $146,000 or more | $10,000 or more | $246,000 and over | No deduction | |
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “Single” filing status. | |||||
Individuals age 50 and older:
A catch-up contribution of $1,000 in tax year 2024 and 2025 may be available.
Source: www.irs.gov
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Contact a Janus Henderson Representative
Our Janus Henderson Representatives will answer your questions and assist you through the movement of assets process. We are available at 800.525.1093 weekdays 9 a.m. to 6 p.m. EST.