IRA Contribution Limits: What You Should Know

Louisiana REALTORS® • March 25, 2024

From your Member Benefit - LaCapitol Federal Credit Union

As the holidays end, Americans begin gearing up for tax season. This time of the year is essentially the eleventh hour to double check your finances so that everything will be in order for your 2024 tax filing.1 Individual retirement accounts, IRAs,2 should be included in that preparation. You’ll want to ensure that you’ve maxed out your contribution, consider catchup contributions if you haven’t, and align your finances to take advantage of the new adjusted IRA contribution limits for next year. Consult your tax professional to see what specific tax advantages apply to your situation.


What are Individual Retirement Accounts?

IRAs are savings accounts that let you save money for retirement and earn interest on it but offer some tax advantages that other savings accounts don’t. La Cap offers several IRA products that fall into the two categories: traditional IRAs and Roth IRAs. You can also view our current rates.


La Cap IRA products (available as Roth and Traditional) include:

•    Certificate Accounts3

•    Floating Rate Account4

•    Bonus IRA Account2


The most basic difference between the two is that with traditional IRAs, the money you save isn’t taxed until you withdraw it while Roth IRA contributions are funded with post-tax money, but qualified withdrawals are tax-free. Because these savings accounts have tax implications for account holders, they’re bound by annual IRA contribution limits that change each year as well as income and age guidelines.


2023 IRA Contribution Limits for Tax Season 2024

It is important to realize that even though you can have more than one IRA account — both a traditional IRA and a Roth IRA, for example — contribution limits are assigned to each individual. The annual contribution limit is an overall figure that applies to the total of all of your IRA accounts together, not each one.


For 2023, the contribution limit is $6,500 for individuals under 50. For individuals 50 or older, the contribution limit is $7,500. The limit for older individuals is $1,000 higher because it allows people who are closer to retirement to make catchup contributions that they probably couldn’t afford when they were younger. Catchup contributions can also help build a cushion against steadily rising living costs.


If you’re thinking that you don’t have time to come up with funds for a catchup contribution, the good news is that you have until Tax Day, April 15, 2024, to make a deposit that can count toward your 2023 IRA. Determining exactly how much you can contribute versus how much you might want to contribute depends on your income and the type of IRA. So, how much can you put in an IRA?


How Income Affects IRA Contribution Limits for 2023

For traditional IRAs, you’re allowed to contribute the full amount up to the contribution limit regardless of your income. However, Roth IRAs control how much you can save by tracking contribution limits with your modified adjusted gross income, also referred to as MAGI.


  • If you file as single, head of household or married filing separately, as long as your MAGI is less than $138,000, you can contribute the full amount. However, if your MAGI is $138,000 or more and less than $153,000, your contribution limit is reduced. If your MAGI is $153,000 or more, no contribution is allowed.
  • If you file as married filing jointly or as a widow/widower, as long as your MAGI is less than $218,000, you can contribute the full amount. However, if your MAGI is $218,000 or more and less than $228,000, your contribution limit is reduced. If your MAGI is $228,000 or more, no contribution is allowed.
  • If you file as married filing separately and lived with your spouse at any time during the year, as long as your MAGI is less than $10,000, you can contribute, but the limit will be reduced. If your MAGI is $10,000 or more, no contribution is allowed.


As a general rule, you cannot contribute more to an IRA than you earn or, if you’re married, your spouse’s earnings will cover.


How Tax Deductions Affect IRA Contribution Limits

While your earnings don’t affect whether you can contribute to a traditional IRA, your MAGI does affect whether you’ll be able to deduct the contributions you make to a traditional IRA from your taxes. Note that only traditional IRAs are eligible for deductions. Roth IRAs are not.


Deduction qualification tables for traditional IRAs assume that you, or your spouse, are covered by a retirement plan through your employer. If you aren’t, the tax deduction limits don’t apply, and you can deduct your entire contribution.


  • If you file as single or head of household, as long as your MAGI is $73,000 or less, you’re eligible for the full deduction. If your MAGI is more than $73,000 and less than $83,000, you’re eligible for a partial deduction. If your MAGI is $83,000 or more, you’re ineligible for a deduction.
  • If you file as married filing jointly and you are covered by your employer’s retirement plan, as long as your MAGI is $116,00 or less, you’re eligible for the full deduction. If your MAGI is more than $116,000 and less than $136,000, you’re eligible for a partial deduction. If your MAGI is $136,000 or more, you’re ineligible for a deduction.
  • If you file as married filing jointly and your spouse is covered by their employer’s retirement plan, as long as your MAGI is $218,000 or less, you’re eligible for the full deduction. If your MAGI is more than $218,000 and less than $228,000, you’re eligible for a partial deduction. If your MAGI is more than $228,000, you’re ineligible for a deduction.
  • If you file as married filing separately, as long as your MAGI is less than $10,000, you’re eligible for the full deduction. If your MAGI is $10,000 or more, you’re ineligible for a deduction.


IRA Contribution Limit Increases for 2024 and the 2025 Tax Season

Each year, the Internal Revenue Service adjusts limits for IRA contributions, typically raising both the contribution limits and the MAGI guidelines. For 2024, the IRS is raising the annual contribution limits by $500. If you’re under 50, you’ll be able to save up to $7,000, and if you’ll be 50 or older, you’ll be able to save up to $8,000.


Note that the IRS also updates and raises the MAGI thresholds for both Roth IRA contributions and traditional IRA tax deductions. For example, in 2024, all figures increase.


  • If you file your taxes as single or head of household, your MAGI must be less than $146,000 to make a full contribution to a Roth IRA. That’s $8,000 more than 2023’s figure.
  • If you file your taxes as married filing jointly, your MAGI must be less than $230,000 to make a full contribution to a Roth IRA. That’s $12,000 more than 2023’s figure.
  • If you file your taxes as single or head of household, your MAGI must be $77,000 or less to get the full tax deduction on a traditional IRA. That’s $4,000 more than 2023’s figure.
  • If you file your taxes as married filing jointly, your MAGI must be $123,000 or less to claim the full tax deduction on a traditional IRA. That’s $7,000 more than 2023’s figure.


The end of the year and start of the new year are busy seasons, but devoting time and attention to your savings now promises the gift of future financial security and independence. If you want to know more about investing in a Roth or traditional IRA, call our Member Services Line at 800.522.2748 or 225.342.5055 to be directed to our savings and investment officers. We offer competitive interest rates that can help you invest wisely. Check out our website, and see why being a member of a nonprofit credit union like La Capitol makes finding the best IRA account so much easier.


Disclosures

1 Consult your tax professional to see what specific tax advantages apply to your situation.


2 APY = Annual Percentage Yield. Bonus IRA is a term share account. La Cap may change the dividend rate for your account as determined by the credit union Board of Directors. The APY is available on new contributions made to your account this year. The maturity date is December 31 of the year the contribution was made. No minimum balance is required to open a Bonus IRA account or to obtain the disclosed APY. IRA transfers or rollovers from another financial institution or retirement plan do not qualify for this special Bonus IRA rate. Dividends earned are posted and compounded monthly. Applicable fees and conditions could reduce the earnings on your account. Substantial penalties for early withdrawal.


3 APY = Annual Percentage Yield. IRA Certificate Account is a term share account.  The Annual Percentage Yield is fixed at the time you make the initial deposit to open or renew the account, and will not change during the term of the Certificate. 

Dividends earned are posted and compounded monthly. Applicable fees and conditions could reduce the earnings on your account. Substantial penalties for early withdrawal.


4 APY = Annual Percentage Yield. IRA Floating Rate Account is a variable rate account with no maturity.  No minimum deposit is required to open this account or to obtain the disclosed Annual Percentage Yield. La Cap may change the dividend rate for your account as determined by the credit union Board of Directors.


Dividends earned are posted and compounded monthly. Applicable fees and conditions could reduce the earnings on your account. Substantial penalties for early withdrawal.

Compliant advertising under the Fair Housing Act

Navigating Fair Housing Advertising Standards: A Guide for Real Estate Professionals

By Louisiana REALTORS® • April 24, 2026
Avoid costly fair housing violations with expert tips on compliant real estate advertising, from listing language to social media targeting strategies.

2026 Legislative Session Scoop - Week 7 Recap

By Louisiana REALTORS® • April 24, 2026
Week seven of the 2026 Regular Session was one of the most active weeks yet for legislation affecting the real estate industry. Louisiana REALTORS® remained heavily engaged as lawmakers advanced bills dealing with property disclosures, appraiser liability, rent regulation, insurance, blight, redevelopment and other issues that directly affect real estate professionals, property owners and consumers across the state. One of the most important bills this week was HB 1166 by Rep. Kim Carver , which would require disclosures for vacant residential property. The bill was reported from House Commerce with amendments on a 14-0 vote and then amended on the House floor, ordered engrossed, and passed to third reading. Louisiana REALTORS® testified on the bill in committee and worked closely with the author to better posture the legislation. Amendments advanced by our team were accepted by the author, helping improve the bill while preserving a practical disclosure framework that increases transparency without creating unnecessary confusion in the transaction process. Another closely watched issue this week was consumer-fee disclosure legislation. HB 617 by Rep. Mandie Landry moved this week, advancing from House Commerce and then the House floor, while HB 580 , another hidden-fee disclosure bill touching real estate transactions, remains pending. Louisiana REALTORS® is opposed to these measures in their current form to the extent they apply to real estate professionals because they are not well-tailored to the realities of real estate transactions, where many costs are negotiated, variable or controlled by third parties. Louisiana REALTORS® testified in opposition to the bills we oppose and is actively working with the author to better posture the legislation and remove real estate professionals from its scope altogether. On HB 472 by Rep. Alonzo Knox , the rent stabilization bill, the author is expected to try to bring the measure back before the committee next week with amendments. Even so, Louisiana REALTORS® remain opposed to the bill on principle. Price gouging is already illegal under existing law, and government-imposed rent regulation is not the right answer to housing affordability challenges. Louisiana REALTORS® testified in opposition to the bill and continues to oppose the measure because policies like this risk discouraging investment, reducing housing supply, and creating further market distortions rather than solving the underlying problem. HB 468 by Rep. Troy Hebert , which regulates the wholesale of residential real property, remains pending in the Senate Commerce Committee and continues to be an important bill for the industry. Likewise, HB 1027 by Rep. Troy Hebert , dealing with appraiser liability, had a strong week, passing the House 90-0 and moving to the Senate. Both measures are significant because they promote greater clarity, consumer protection and confidence in the real estate marketplace. Blight and redevelopment issues also remained active. HB 284 by Rep. John Wyble , which would allow certain local governments to expropriate blighted property through a declaration-of-taking process, remains subject to call and continues to raise serious concerns about private property rights. By contrast, HB 214 and HB 217 by Rep. Chance Henry , which create tax incentives for the rehabilitation of blighted property, represent a more constructive redevelopment approach by encouraging reinvestment rather than expanding government taking authority. Insurance legislation also remained a major focus this week, with multiple bills heard that could affect homeownership costs, market stability and post-storm recovery. Measures dealing with Louisiana Citizens assessments, pre-suit insurance claim review, the Fortified Homes Program and insurance market transparency all carry real implications for affordability and transaction viability. In Louisiana, insurance remains one of the most important issues affecting the real estate market, and Louisiana REALTORS® continues to closely track that legislation. Taken together, week seven showed that Louisiana REALTORS® remains actively engaged where it matters most: supporting practical transaction standards, protecting private property rights, testifying for and against legislation when necessary, pushing back on unworkable regulation and rent-control-style policies, and advancing policies that strengthen housing opportunity and market stability across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.

Consumer Guide Update: Navigating Interest Rates Shifts

By Louisiana REALTORS® • April 23, 2026
NAR is pleased to share the latest consumer guide helping buyers navigate shifting interest rates. The one-page guide covers how lenders set rates, the impact of small shifts on monthly payments and strategies to get the lowest rate possible. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Spotting Deepfake Scams in Real Estate Are You Ready to Invest in Real Estate? Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which looks at how solar installations may impact home sales transactions.
Show More