How Much Can You Contribute to a Traditional IRA?

For 2017, the Traditional IRA contribution limits, or to any IRA accounts you have (Traditional, Roth or both) are $5,500 in total. If you’re 50 or older, you can contribute $6,500.

Most Americans can deduct their contributions to a Traditional IRA, but your ability to do so could be affected by your income and whether you and/or your spouse is covered by an employer plan, like a 401(k). The details are in the chart below.

If you are unable to deduct your contributions, you may want to consider a Roth IRA. Roth IRAs are not tax-deductible when you put money in, but all of the money you withdraw is tax free. Your annual contribution limits apply to Roth and Traditional IRAs combined, but Roth IRAs have different income limits.

IRA contribution limits do not apply to rollovers, so you can contribute any amount to your IRAs as long as it is coming from another retirement plan.. (A rollover is when you move money from a 401(k) into an IRA or from one IRA to another.)

If you accidentally contribute too much to your IRA, take it out again as quickly as possible. You have until the due date of your individual income tax return, including extensions. Until you do, you’ll owe a 6% tax on the excess.

You can take the full deduction for your contribution, unless you or your spouse is covered by a retirement plan at work. If you/your spouse are covered by a plan, you can still contribute up to the limit, allowing your contributions to grow tax free, but your tax deduction could be limited or not permitted.

Tax Filing Status
Modified AGI (MAGI)*
Eligible Deduction
Single or head of household, covered by a plan at work $62,000 or less  $5,500 ($6,500 for those 50 and older)
More than $62,000 but less than $72,000 Partial deduction
$72,000 or more No deduction
Married filing jointly: You are covered by a plan at work. Or qualifying widow(er) with plan at work $99,000 or less $5,500 ($6,500 for those 50 and older).
More than $99,000 and less than $119,000 Partial deduction
$119,000 or more No deduction
Married filing jointly: You have no plan at work/your spouse is covered by a plan at work $186,000 or less $5,500 ($6,500 for those 50 and older).
More than $186,000 but less than $196,000 Partial deduction
$196,000 or more No deduction
Married filing separately, whether your spouse has a plan at work or not [if you lived with spouse] Less than $10,000 Partial deduction
$10,000 or more No deduction

 

* What is My MAGI?

The earning limits are based something called your modified adjusted gross income (MAGI). MAGI is calculated by taking the adjusted gross income from your tax forms and adding back deductions for things like student loan interest and higher education expenses. Click here to learn more about how to figure out your MAGI. Even better, consult your financial advisor or an accountant.

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