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.

2026 Legislative Session Scoop - Week 9 Recap

By Louisiana REALTORS® • May 8, 2026
Week 9 brought several major Louisiana REALTORS® priorities into posture as the Legislature moved deeper into the final stretch of the session. Two of our top priority bills, HB 468 and HB 1027 both by Representative Troy Hebert , cleared the Legislative Bureau and advanced to the Senate floor calendar for third reading and final passage. HB 468, our residential wholesaling regulation bill, remains one of the most important consumer protection measures of the session. The bill brings transparency, accountability, and clear rules of the road to residential real estate wholesaling in Louisiana. HB 468 previously passed the House by a vote of 96–0 and is now positioned for final Senate consideration. HB 1027, which clarifies that licensed real estate appraisers are not liable for a seller’s failure to comply with carbon monoxide detector requirements, also advanced to the Senate floor calendar after previously passing the House by a vote of 90–0. Both bills remain in strong posture, and Louisiana REALTORS® will continue working for final passage as they move through the Senate. Another major development this week was the House passage of HB 1166 by Representative Kim Carver , which passed unanimously on May 5, 103–0. HB 1166 creates a practical disclosure framework for vacant residential property transactions and is designed to help buyers, sellers and real estate professionals avoid late-stage surprises involving access, utilities, drainage, flood risk, prior use and other material property conditions. This bill has been a key part of Louisiana REALTORS®’ consumer protection and transactional clarity agenda. HB 1166 was received in the Senate on May 7 and now moves into the Senate side of the process, where Louisiana REALTORS® will continue working closely with the author and stakeholders as the bill advances. Tort reform and civil justice issues also moved forward this week. HB 437 by Representative Michael Melerine , which addresses the award of expert witness fees in civil litigation, passed the House by a vote of 75–18 and was received in the Senate on May 7. HB 1089 by Representative Dennis Bamburg Jr. , which creates structured CARE Accounts for certain categories of tort damages, passed the House by a vote of 67–29 and was also received in the Senate. Louisiana REALTORS® continue to support meaningful tort reform as part of the broader effort to improve Louisiana’s legal environment, reduce litigation-driven costs, and help stabilize the property insurance market. A more predictable civil justice system directly supports property owners, consumers, businesses and the long-term health of Louisiana’s real estate market. Property insurance remains one of the most important issues facing homeowners and property owners across the state. HB 1187 by Representative Paul Sawyer , dealing with Citizens Property Insurance emergency assessments, has been received in the Senate and referred to the Senate Insurance Committee after previously passing the House by a vote of 87–9. Several additional insurance-related measures remain active, including bills addressing fortified roof endorsements, stated-value homeowner policies, insurance notice requirements, nonrenewal restrictions, and pre-suit claim review. HB 408 , which addresses insurance nonrenewal prohibitions, and HB 1210 , which addresses mandatory pre-suit claim review, remain pending in the House Insurance Committee. Louisiana REALTORS® will continue to closely monitor these measures because insurance affordability, availability and market stability remain central to housing affordability and private property ownership in Louisiana. Several Senate bills also continued moving through the House processes this week. SB 241 by Senator Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared the Legislative Bureau on May 6 and returned to the House floor calendar. This measure remains relevant to transparency, accountability, and consumer confidence in the insurance claims process. SB 180 by Senator Franklin Foil , which allows surviving spouses of deceased disabled veterans to transfer their expanded property tax exemption, was scheduled for House floor debate this week and remains a positive homeowner protection and property tax fairness measure. Louisiana REALTORS® also continues to monitor legislation dealing with blight, redevelopment and rent stabilization. HB 284 by Representative John Wyble , which would authorize certain parishes and municipalities to expropriate blighted property by declaration of taking, remained on the House calendar this week as a notice-given, subject-to-call bill. The bill previously failed on the House floor by a narrow vote of 48–47 and remains under active reconsideration. Blight policy is important, but redevelopment tools must be balanced with private property rights, due process, and protections for property owners. HB 472 by Representative Alonzo Knox , which would authorize municipalities to implement rent stabilization programs, remains involuntarily deferred in committee. Louisiana REALTORS® continues to oppose rent control and rent stabilization proposals in any form because these policies reduce housing supply, discourage investment, and ultimately worsen affordability challenges over time. As we move into Week 10, Louisiana REALTORS® will remain focused on securing final Senate passage of HB 468 and HB 1027, advancing HB 1166 through the Senate, and continuing to engage on the tort reform and insurance measures that directly affect property owners, housing affordability and the real estate profession. With REALTOR® Day at the Capitol taking place during this critical stretch of the session, member engagement will be especially important as legislators continue to make decisions on real estate, insurance, liability, redevelopment and private property rights issues. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.

2026 Legislative Session Scoop - Week 8 Recap

By Louisiana REALTORS® • May 1, 2026
Week 8 was one of the most consequential weeks of the session so far for Louisiana REALTORS® and the real estate industry. Two of the association’s flagship bills moved to the brink of final Senate action, rent stabilization was stopped again in committee, major insurance legislation continued to advance, and several bills affecting property rights, tort reform and transaction practice saw meaningful movement. The biggest developments of the week came on HB 468 and HB 1027 , both by Rep. Troy Hebert . HB 468 , the residential wholesaling bill, cleared the Senate Commerce Committee on April 28, had its amendments adopted on April 29, and was referred to the Legislative Bureau putting it one step away from the Senate floor. HB 1027 , the appraiser liability bill, followed the same path after its overwhelming House passage earlier this month and is also now pending Legislative Bureau review before final Senate consideration. Louisiana REALTORS® strongly supports both measures, which are designed to strengthen consumer protection, improve market clarity and reinforce confidence in the real estate transaction process. On the rent-control front, HB 472 by Rep. Alonzo Knox was brought back before the House Municipal, Local and Parochial Affairs Committee this week. Louisiana REALTORS® testified in opposition, and the committee voted 8-5 to defer the bill involuntarily. That is a meaningful win for property owners, housing providers, and the long-term health of Louisiana’s housing market. Louisiana REALTORS® remains firmly opposed to rent stabilization proposals, which may sound politically attractive, but have consistently been tied to reduced housing supply, deterioration in rental stock and long-term affordability problems in markets where they are adopted. Insurance remained one of the session’s most active and important policy areas. HB 1187, Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, passed the full House 87-9 on April 29, and now heads to the Senate. Because Citizens' assessments can ultimately affect policyholders across the state, this bill has clear relevance for affordability and homeownership costs. HB 408, Rep. Edmond Jordan was heard in House Insurance Committee this week and remains pending. This bill would prohibit insurers from non-renewing residential policies when homeowners have taken documented steps to reduce risk, an issue with direct implications for insurability and failed closings in vulnerable markets. In addition, SB 241 by Sen. Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared House Insurance unanimously and is now headed to the House floor. Taken together, these measures reflect the legislature’s continued focus on insurance stability, transparency and accountability, all of which remain central to real estate activity in Louisiana. Week 8 also brought movement on broader tort reform and property-rights-related legislation. HB 437 , addressing expert witness fees, and HB 1089 , creating structured CARE Accounts for tort damages, both cleared House Civil Law and are now set for House floor debate next week. Meanwhile, SB 180 by Sen. Franklin Foil , allowing surviving spouses of disabled veterans to transfer a property tax exemption, is nearing final House passage after advancing to third reading. While not all of these bills directly regulate licensees, they reflect the broader civil liability and property tax environment that affects the cost and accessibility of owning property in Louisiana. Another key bill for the industry, HB 1166 by Rep. Kim Carver , remains very much alive and is now positioned for House floor debate on Tuesday, May 5 . The bill would require disclosures for vacant residential property, and it would close an existing gap in Louisiana law that currently exempts many vacant homes from standard seller disclosure rules. After being called and returned to the calendar earlier in the week, the bill is now finally set for debate. Louisiana REALTORS® also intends to use the bill as a vehicle for a structural amendment to the Louisiana Real Estate Commission that would move toward a more geographically balanced appointment process, with one member appointed from each congressional district and the remaining members appointed at large. That change would better ensure regional representation across Louisiana’s diverse real estate markets and help modernize the commission’s structure. Taken together, week 8 was a strong and consequential week for Louisiana REALTORS®. The association’s two flagship bills are now within reach of Senate floor passage, rent stabilization was turned back in committee, important insurance legislation continued moving, and HB 1166 remains positioned as both a major disclosure bill and a possible vehicle for meaningful LREC reform. Louisiana REALTORS® remains fully engaged at every stage of the process to protect private property rights, support practical regulation and advance policies that strengthen Louisiana’s real estate market. Lastly, this week, Louisiana REALTORS® wants to extend sincere thanks to Rep. Delisha Boyd — a real estate broker herself — for her tireless work shepherding HB 292 through the legislative process. The security deposit fairness bill, which allows landlords and tenants to mutually agree in writing to extend the timeline for returning a security deposit when damage is found, has passed to third reading and final passage in the Senate and is nearly on its way to the Governor's desk. This has been a meaningful win for both property owners and renters across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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