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February 2, 2025
Question

Is this combined traditional IRA and Roth IRA maximum contribution of $7k true? Vanguard states that the maximum employee Roth contribution for 2024 was $23k?

  • February 2, 2025
  • 2 replies
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    2 replies

    February 2, 2025

    It depends, your question combines information from different contribution limits. See the information below for the maximums of each type of contributions:

     

    Traditional and Roth IRA Contribution Limits for 2024:

    • The combined contribution limit for traditional and Roth IRAs is $7,000 if you are under age 50.
    • If you are age 50 or older, the limit is $8,000

    401(k) and 403(b) Contribution Limits for 2024:

    • The employee contribution limit for 401(k) and 403(b) plans is $23,000.
    • If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $30,500

    Here are some IRS resources for more details:

    Employee
    February 3, 2025

    Vanguard was referring to a designated Roth account in an employer plan, not to a Roth IRA.  They are two different types of Roth accounts established under different sections of the tax code.