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Traditional IRA

A comprehensive guide to the tax treatment of a traditional IRA account. Find annual contribution limits, inflation adjustments, IRS forms, and more.

Overview

Age Contribution Limit: None after 2019.

Annual Contribution Limits 2024: $7,000 ($8,000 age 50+)

Income Limits: Limited to 100% of compensation

Timing: Contribution by the return due date (without extensions)

Types: Deductible and Nondeductible

AGI Based Deduction Phase-Out - Active Participants in an Employer Plan (2024):

  • Unmarried: $77 to 86,999 
  • Joint: $123 to 142,999 
  • MS: $0 to 10,000 
  • Jt & only 1 spouse active: $230,000 to 239,999

Inflation Adjusted: Future Years

  • IRS Form 5329 - Additional Taxes on Qualified Plans 
  • IRS Form 8606 - Nondeductible IRAs 
  • IRS Form 8888 – Direct Deposit of Refund 
  • IRS Form 8915 E – Coronavirus-related Distributions 
  • IRS Form 990-T – Unrelated Business Income 
  • IRS Pub 590-A – Contributions to IRAs 
  • IRS Pub 590-B - Distributions from IRAs 
  • IRC Sections 219, 408, 511

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