The IRS has announced the 2025 limits for IRAs.
REMINDERS:
* An individual's regular IRA contributions cannot exceed their eligible compensation. What does this mean?
Eligible compensation includes wages, self-employment income, salaries and tips. It does not include rental income, dividends, interest, profits, Social Security or Pensions.
* All IRAs are opened and owned by a single person - by your Social Security Number.
* If you have little or no income, and file a joint tax return, you can contribute to an IRA based on your spouse's compensation.
* To determine if you've reached the maximum contribution amount for the year - add your regular IRA contributions AND your Roth Contributions AND any rollovers from 529s to a ROTH.
* If we exceed the IRA contribution limit, you may owe the IRS an excise tax on the excess amounts.
CONTRIBUTION LIMITS 2025
* 401K - Under 50 - $23,500 add $7,500 if you are over 50 years of age.
* IRA - (Roth, Traditional or a combination) - Under 50 - $7,000 add $1,000 if you are over 50 years of age
Contributions can be made to an IRA on a monthly basis and you can contribute for 2024 up to April 15, 2025.
There are income levels to take in to consideration, as well. Please contact our office for a full understanding if YOU are eligible to participate in an IRA.
315-484-1020 or www.terzolofinancial.com