Checklist #17 · Retirement
IRA Decision
Determine the right IRA type based on your income, current tax bracket, future expectations, and eligibility — then take action.
21 action items~15 min to complete4 sections
0%
0/23
completed
completed
Overall progress0 of 23 items
✅
Confirm Eligibility
0/10 completed
Verify you have earned income equal to or greater than your planned IRA contributionKey
Check Roth IRA income limits for your filing status (2024: $161K single, $240K married)Key
Determine if your Traditional IRA contribution is deductible
Confirm the annual contribution limit: $7,000 ($8,000 if 50+) for 2024Key
Verify Earned Income RequirementKey
Check Roth IRA Income LimitsWatch out
Determine Traditional IRA DeductibilityKey
Confirm Annual Contribution LimitKey
Review Modified Adjusted Gross IncomeAction
Verify No Active Workplace Retirement PlanWatch out
🏦
$7,000
2024 IRA contribution limit (under 50) — $8,000 if age 50 or older
$161K
2024 Roth IRA income phase-out start (single) — $240K for married filing jointly
🔀
Choose Traditional vs. Roth
0/5 completed
Estimate your current effective federal tax rate
Estimate your expected retirement tax rateKey
Choose Roth if current rate is likely lower than future rate
Choose Traditional if current rate is likely higher than future rate
Consider splitting contributions between both for tax diversification
🚀
Advanced Strategies
0/4 completed
Evaluate the Backdoor Roth if income exceeds Roth limitsKey
Understand the pro-rata rule before attempting Backdoor RothWatch out
Consider a spousal IRA if one partner has no earned income
Understand IRA rollover rules when changing jobs or receiving an inheritanceWatch out
⚡
Open and Fund the Account
0/4 completed
Open an IRA at a low-cost provider (Fidelity, Vanguard, Schwab)Action
Select your investments: at minimum, a target-date fund or 3-fund portfolioKey
Automate monthly contributions rather than contributing annually as a lump sum
Contribute for prior year by April 15 if you haven't maxed itAction