Do you currently contribute to a 401k and are considering adding an IRA to your retirement savings plan? In 2024, you can contribute up to $7,000 to either a traditional IRA, Roth IRA, or a combination of both. If you are 50 years or older, you can make an additional catch-up contribution of $1,000 on top of the standard limit.

Your ability to deduct contributions to a traditional IRA or contribute to a Roth IRA will be determined by your Modified Adjusted Gross Income (MAGI) if you are covered by a 401k or another employer-sponsored plan. Your income and filing status will dictate how much you can contribute and deduct for a traditional IRA, as well as how much you can contribute to a Roth IRA.

For specific income brackets and details on contribution limits based on your filing status, visit irs.gov for more information. Be mindful of over-contributing to your IRA, as exceeding the limits can result in a 6% excess tax penalty. If you realize you have contributed too much, withdraw...