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Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

Hoping someone can help.  I am looking for help determining how much, if anything, I qualify to contribute to a ROTH IRA for 2024.

I would like to preface in advance - I do not have an accountant as I prepare all my taxes myself using turbo tax. 

 

Last June I was laid off.

Up until the layoff I was contributing to a 401k.

I collected unemployment for about 4 weeks before I started a contract position.

The new company does not allow 401K contributions until after 6 months employment.

So from 7/25 till present I have not been contributing to a 401k.

 

Since starting my new job I have been setting aside some money from each check. Its not alot of money...so far it is about $1800 and by end of December , I may save another $1800. Total for 2024 would be about $3600.

 

I do not have an accountant who can help me, as I use turbo tax to do all my taxes, I was wondering if there is a way to project if I qualify to contribute any money to a ROTH IRA.

 

Can I use any of my 2023 W2 and tax information to project what my MAGI might be for 2024 .

I really do not understand how to calculate MAGI (to be frank) and I just want to be able to put this money I have saved somewhere - even if it means once I start my 401K in 2025, I do not contribute anything additional to the ROTH IRA.


I have a  traditional IRA with little funds, just under $3000. Does it make sense to add the money saved to that?

 

If anyone can help me find an easy way to determine if I qualify to contribute anything for a ROTH IRA,  I would appreciate it.  

 

Does turbo tax offer any software or calculators to help with this??

 

As a reference I included 2023 Income Tax info. Not sure if it helps project what 2024 might look like.

Thank You In Advance....I know I should probably hire an accountant but right now it is not an option.

_________________________________________________________________________________________________

  • My personal 2023 W2 wages were about $160,000
  • In 2023 I contributed about $13000 to a 401K  so 2024 will be about half of this since I was laid off at end of June.
  • My husband does not contribute to a 401K
  • I file joint taxes with my husband

        2023 taxes 

  • Adjusted Gross Income $ 201,246.00
  • Federal | Taxable Income $ 163,964.00

 

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5 Replies

Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

You can contribute to a Roth IRA. 
The IRA contribution limit is $7,000, or $8,000 for individuals 50 or older in 2024

Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

Thank You. Are you able to tell me how this is determined? My financial planner made it sound difficult and I want to be sure.

Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

You can contribute the amount of your earned income up to the limit explained previously. Earned income is income earned as an employee or by being self employed. You can make a 2024 contribution any time before April 15, 2025 so your 2024 tax return will tell you how much your earned income was for 2024. 

IsabellaG
Employee Tax Expert

Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

@richlyntek Bsch4477 is correct that you can contribute to a Roth IRA up to the $7,000 ( or $8,000) if your Modified AGI (MAGI) is less than $230,000 in 2024. You may be able to project your 2024 MAGI by comparing your 2023 MAGI and accounting for the changes in your situation. 

 

MAGI is calculated by taking your Adjusted Gross Income and adding back items like your student loan interest deduction, foreign earned income exclusion, and excludable savings bond interest. You can see Worksheet 1-1 on page 15 of Publication 590-A for the complete calculation.

 

For Roth contributions, you don't need to worry about whether or not you could contribute to an employer's 401(k) plan. Those limits apply to the deduction allowable for a Traditional IRA.

 

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J316
New Member

Is there any easy way to determine what I can contribute to a ROTH IRA for 2024??

The current limit is IRA limit $7,000.00 Suggest you go to IRS.gov for details. 

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