reduction of income via IRAs

[FH13]

What is the best way to determine if I am able to contribute to an IRA to reduce my tax liability (maximum allowed income limits I've seen listed are confusing)? If I am using the catch-up option to contribute to my 401k (Roth or standard), can I contribute to another IRA?

[MayaD]

401(k) and IRA contribution limits are separate, meaning you can contribute to both, but each has its own annual limit.

The maximum total annual contribution for all your IRAs (Traditional and Roth) combined is:

• $7,000 (for tax years 2024 - 2025) if you're under age 50
• $8,000 (for tax years 2024 - 2025) if you're age 50 or older

However, the deduction of your IRA contribution may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

IRA deduction limits