IRA Contribution Calculator: Roth, Traditional, and SEP

Input your information below and see an estimate of how much you can contribute to a Traditional, Roth, and SEP IRA account this year. Keep in mind, your individual tax circumstances are unique and you should consult a qualified tax advisor prior to making a contribution.

This is not a recommendation of any account type, contribution amount, investment strategy, nor a recommendation to buy, hold, or sell any security.

Calculate your IRA contribution limits for 2024

How the calculator works:

• Traditional IRA contribution limit: To calculate the traditional IRA contribution limits, the calculator first determines the individual’s age, as those who are 50 years old or older can make additional catch-up contributions. Next, it assesses the individual’s income level and filing status to apply the appropriate income phase-out ranges, which can affect the deductible amount of the IRA contributions. The calculator then checks if the individual or their spouse is covered by a retirement plan at work, as this also impacts the deductibility of contributions. Finally, the calculator uses this information to determine the maximum contribution amount that can be deducted for the tax year. Calculations based on figures from the IRS: Contributions to Individual Retirement Arrangements (IRAs)

• Roth IRA contribution limit: To calculate Roth IRA contribution limits, the calculator first assesses the individual’s filing status and modified adjusted gross income to determine eligibility, as Roth IRAs have income limits. Next, it checks the individual’s age to see if they qualify for catch-up contributions, which are additional contributions allowed for those 50 years old or older. The calculator then uses this information to determine the maximum contribution amount for the year, keeping in mind that contributions to a Roth IRA are made with after-tax dollars and are not tax-deductible. Calculations based on figures from the IRS: Contributions to Individual Retirement Arrangements (IRAs)

• SEP IRA contribution limit: To calculate the SEP IRA contribution limit, the calculator adjusts the net profit by reducing it by the deductible portion of the self-employment (SE) tax and the amount of the individual’s own retirement plan contribution. This adjusted net profit is then used to determine the plan compensation, which is necessary for calculating the SEP IRA contribution. Calculations based on figures from the IRS: Self-employed individuals: Calculating your own retirement plan contribution and deduction

Understanding IRA Contribution Limits

By using our IRA Contribution Calculator above you can learn more about how much you can contribute this year to each retirement account:

Traditional IRAs

A traditional IRA (individual retirement account) is a retirement account that you can open and fund yourself, that may carry certain tax advantages. This account is not through an employer.

Traditional IRA contribution limits for 2024 are: $7,000 or $8,000 if you are 50 years or older, and for 2023 are: $6,500 or $7,500 if you are 50 years or older. Contributions you make to a traditional IRA may be fully or partially deductible, depending on your filing status and income.

Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until you takea distribution (withdrawal) from your IRA.

Learn more: What Is an IRA? Types and Benefits, Explained

Roth IRAs

A Roth IRA is also a retirement account that you open and fund yourself (not through an employer). However, this account is different from a traditional IRA because you contribute after-tax money to it, and if you meet the requirements you can make your distributions tax-free. You cannot deduct contributions to a Roth IRA. You can make contributions to your Roth IRA after you reach age 70 ½. You can leave amounts in your Roth IRA as long as you live.

Roth IRA contribution limits for 2024 are: $7,000 or $8,000 if you are 50 years or older, and for 2023 are: $6,500, or $7,500 if you are over 50 years old. Income limitations apply.

Learn more: What Is a Roth IRA and How Does It Work?

SEP IRAs

A SEP IRA (Simplified Employee Pension) is a retirement account for small business owners or self-employed people.

Contribution limits for 2024 are: $69,000 or 25% of compensation per employee, whichever is lower. For 2023, the contribution limits are: $66,000 or 25% of compensation per employee, whichever is lower. Other limitations may apply.

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.

SEP IRAs are available to any size business and are easily established by adopting Form 5305-SEPPDF, a SEP prototype, or an individually designed plan document. Of note, if Form 5305-SEP is used, you cannot have any other retirement plan (except another SEP). There is no filing requirement for the employer and only the employer contributes to traditional IRAs (SEP-IRAs) set up for each eligible employee. Additionally, the employee is always 100% vested in (or, has ownership of) all SEP-IRA money.

Learn more: What Is a SEP IRA and How Does It Work?

More resources.

Next Steps

Ready to invest for your retirement? It’s easy to get started when you open an IRA online with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

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