What if I over-contributed to my IRA? What if I over-contributed to my IRA?

What if I over-contributed to my IRA?

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The maximum annual cash contribution limit for both Traditional and Roth IRAs for 2024 and 2025 is $7,000 if you are under the age of 50 and $8,000 if you are over the age of 50. Contribution limits for SEP IRAs differ for each individual. For 2024, you can contribute up to $69,000, or 25% of your adjusted gross income per year. For 2025, the SEP contribution limit is $70,000. It is recommended to speak with your tax advisor on your SEP IRA contribution limits. Please keep in mind if you hold more than one IRA, the contribution limits apply to your total collective contributions.

IRS guidelines for IRA contribution limits can be found at Retirement Topics - IRA Contribution Limits | Internal Revenue Service (Roth and Traditional IRAs) and Retirement Plans FAQs regarding SEPs | Internal Revenue Service (SEP IRAs). You have until April 15th, 2025 to make cash contributions for the tax year 2024.

If you believe you have over contributed to your IRA, please speak with your CPA or tax professional before submitting a request. Upon confirmation with your CPA, submit a distribution request to correct the overcontribution.