1. What Are IRA Rollover Contribution Limits?

IRA rollover contribution limits determine the maximum amount you can contribute to your IRA account each year. These limits are set by the IRS and include catch-up contributions for individuals aged 50 and older.

2. How Does The Calculator Work?

The calculator uses the current IRA contribution limits:

Where:

• $7000 — Base contribution limit for 2025
• $1000 — Catch-up contribution for age 50+
• Age — Your current age in years

Explanation: The calculator determines your maximum allowable IRA contribution based on your age and current IRS limits.

3. Importance Of IRA Contribution Limits

Details: Understanding and adhering to IRA contribution limits is crucial for maximizing retirement savings while avoiding IRS penalties for over-contributions.

4. Using The Calculator

Tips: Enter your current age in years. The calculator will automatically apply the appropriate contribution limits based on IRS guidelines for 2025.

5. Frequently Asked Questions (FAQ)

Q1: What happens if I contribute more than the limit?
A: Excess contributions are subject to a 6% excise tax each year until corrected.

Q2: Do these limits apply to both Traditional and Roth IRAs?
A: Yes, the combined contributions to all your IRAs cannot exceed these annual limits.

Q3: Are rollover contributions subject to these limits?
A: No, rollovers from qualified retirement plans are not counted toward annual contribution limits.

Q4: How often do contribution limits change?
A: The IRS typically adjusts limits for inflation every few years, but not necessarily annually.

Q5: Can I make contributions after age 70½?
A: For Traditional IRAs, no. For Roth IRAs, yes, as long as you have earned income.