Choose the IRA that meets your needs
Sit back, relax—and let your savings do the work. Whether you’re planning for retirement or your child’s education, our Individual Retirement Accounts (IRAs) are designed to help your money grow while you plan ahead. Choose from Traditional, Roth, or Coverdell Education Savings Accounts to meet your long-term financial goals.
Which IRA fits your future? Here’s a quick guide:
Roth IRA – Best if you don’t need a tax break now and want flexibility down the road:
- Withdraw regular contributions anytime, tax- and penalty-free
- No mandatory distributions
- Earnings grow tax-free if the account’s been open at least five years and the withdrawal is qualified
Traditional IRA – Ideal if you’re seeking an upfront tax deduction:
- Contributions may be tax-deductible now
- Especially smart if you expect to be in a lower tax bracket during retirement
Coverdell ESA – Designed to make education expenses easier to manage:
- Offers tax-free withdrawals for qualified education expenses
- Can be used for K–12 costs at public, private, and parochial schools—more flexible than a 529 plan
2023-2024 Contribution Limits
Type Of Contribution | 2023 Contribution Limits | 2023 Deadlines | 2024 Contribution Limits | 2024 Deadlines |
Traditional IRA | $6,500 | APRIL 15, 2024 | $7,000 | APRIL 15, 2025 |
Roth IRA | $6,500 | APRIL 15, 2024 | $7,000 | APRIL 15, 2025 |
Catch-Up* | $1,000 ($7,500 MAXIMUM) | APRIL 15, 2024 | $1,000 ($8,000 MAXIMUM) | APRIL 15, 2025 |
Coverdell | $2,000 | APRIL 15, 2024 | $2,000 | APRIL 15, 2025 |
*For IRA holders 50 or older by December 31st of contribution year.
2024 IRA Contribution and Deduction Limits
2024 Combined Traditional and Roth IRA Contribution Limits:
If you are under 50 years of age at the end of 2024: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $7,000 or the amount of your taxable compensation for 2024. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $7,000.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
If you are 50 years of age or older before the end of 2024:
The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $8,000 or the amount of your taxable compensation for 2024. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $8,000. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
Looking for Additional IRA Information?
For more information on IRA changes or to open an IRA at Diamond Valley Federal Credit Union, contact DVFCU using the button below or call 812-425-5152.
