Historical IRA Contribution Limits by Year

An Individual Retirement Arrangement (IRA) is a tax-advantaged savings plan that holds investment assets purchased with a person’s earned income. The function of an IRA is to allow savings to grow with either tax-deferred or tax-free potential, depending on the account type. This article details the historical contribution limits set by the Internal Revenue Service (IRS), which dictate the maximum amount a person can add to their IRAs each year.

Historical Contribution and Catch-Up Limits

The maximum amount an individual can contribute to their IRA is subject to annual adjustments for inflation and legislative changes. From their inception, these limits have periodically increased to reflect economic shifts. For instance, the maximum contribution stood at $2,000 per year from 1982 until 2001.

A “catch-up” contribution, which first became available in 2002, allows individuals nearing retirement age to accelerate their savings. Those who are age 50 or older by the end of the tax year are permitted to contribute an additional amount over the standard limit. This catch-up amount has also been subject to periodic adjustments.

Understanding the specific limits for prior years is necessary for individuals reviewing their past financial activity or seeking to make retroactive corrections. The table below details the standard contribution limits and the additional catch-up amounts available to those age 50 and over for each year.

| Year(s) | Standard Contribution Limit (Under Age 50) | Catch-Up Contribution (Age 50+) | Total Maximum (Age 50+) |
| :— | :— | :— | :— |
| 2025 | $7,000 | $1,000 | $8,000 |
| 2024 | $7,000 | $1,000 | $8,000 |
| 2023 | $6,500 | $1,000 | $7,500 |
| 2019-2022 | $6,000 | $1,000 | $7,000 |
| 2013-2018 | $5,500 | $1,000 | $6,500 |
| 2008-2012 | $5,000 | $1,000 | $6,000 |
| 2006-2007 | $4,000 | $1,000 | $5,000 |
| 2005 | $4,000 | $500 | $4,500 |
| 2002-2004 | $3,000 | $500 | $3,500 |
| 1997-2001 | $2,000 | N/A | $2,000 |
| 1982-1996 | $2,000 | N/A | $2,000 |
| 1975-1981 | $1,500 | N/A | $1,500 |

Income-Based Contribution Restrictions

Beyond the annual dollar limits, an individual’s ability to contribute to an IRA can be restricted by their income. The figure used for this determination is the Modified Adjusted Gross Income (MAGI), calculated from a person’s tax return. The rules differ between Roth and Traditional IRAs, so savers must understand which regulations apply to their situation.

For Roth IRAs, MAGI directly determines eligibility to contribute. The IRS establishes annual income phase-out ranges based on a taxpayer’s filing status. If a person’s MAGI falls within this range, the amount they can contribute is reduced. If their MAGI exceeds the upper threshold, they are prohibited from making any contribution for that year.

The rules for Traditional IRAs depend on whether the individual or their spouse is covered by a retirement plan at work. If neither is covered by a workplace plan, contributions are fully deductible regardless of income. If the individual is covered, their ability to deduct the contribution is subject to MAGI phase-out ranges. A contribution can still be made if income exceeds the phase-out range, but it will be non-deductible.

For example, in 2025, the Roth IRA phase-out range for a single filer is between $150,000 and $165,000. A single filer with a MAGI of $155,000 would be able to make only a partial contribution, while someone with a MAGI of $170,000 could not contribute at all. For that same year, a single filer covered by a workplace retirement plan can only take a full deduction for a Traditional IRA contribution with a MAGI up to $79,000, with the deduction phasing out completely at $89,000.

Correcting Past Excess Contributions

An excess contribution occurs when an individual contributes more than the annual limit or contributes when ineligible due to income restrictions. To avoid penalties, the excess amount and any investment earnings it has generated must be removed from the account.

The primary method for correction is to withdraw the excess contribution and its associated net income before the tax filing deadline, including extensions, for the year the excess contribution was made. For instance, if an excess contribution was made for the 2024 tax year, it must be withdrawn by the filing deadline in 2025. This allows the individual to avoid the 6% excise tax on the excess amount for that year.

If the deadline for withdrawal has passed, the excess contribution becomes subject to a 6% excise tax for each year it remains in the account. To address this, the individual must file IRS Form 5329. This form is used to calculate and pay the excise tax due. The excess amount can then be applied as a contribution for a subsequent year, provided the individual is eligible, or withdrawn to prevent the tax from recurring in future years.