Categories: Income

Traditional IRA Income Limits: What You Need to Know

A traditional IRA is a retirement savings plan that offers tax advantages to help individuals save for retirement. The amount of money that an individual can contribute to a traditional IRA is limited by the Internal Revenue Service (IRS) each tax year. For 2021, the income limit for contributing to a traditional IRA is $124,000 for single taxpayers and $196,000 for married couples filing jointly. Individuals with higher incomes are still eligible to make contributions to a traditional IRA, but any contributions over the income limit are subject to a tax penalty.

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