When planning your retirement savings, understanding the annual contribution limits for Individual Retirement Accounts (IRAs), Roth IRAs, and how these interact with 401(k) contributions is essential. Below is an itemized breakdown of contribution limits, income caps, and key considerations. 1. Traditional IRA Contribution Limits (2024) 2. Roth IRA Contribution Limits (2024) 3. Non-Deductible Traditional IRA Contributions 4. Considerations When You Also Contribute to a 401(k) 5. Caution: Pro-Rata Rule for Roth IRA Conversions If you plan to make non-deductible IRA contributions and later convert them to a Roth IRA (commonly known as a “backdoor Roth IRA”), be aware of the pro-rata rule. This rule requires you to calculate taxes on the conversion based on the proportion of pre-tax and after-tax funds across all your traditional IRAs. By balancing 401(k) and IRA contributions, you can maximize tax benefits and long-term retirement growth. If income caps restrict your IRA options, consider strategies like non-deductible IRA contributions or a Roth IRA conversion. In terms of non-deductible IRA contributions, you’ll need to track its basis for tax purposes.