Traditional and Roth IRA contributions

Before you get started

Contributions are generally processed the day they are received and credited to your account the same business day. Contributions received after the close of the New York Stock Exchange are invested at the next business day’s price per share. Consider talking to your financial professional before investing. They can offer advice and help you make decisions that support your long-term financial plan.

Things to consider

  • For 2024, individuals can contribute up to $7,000 (plus an additional $1,000 for those age 50 or over). For additional information, review the IRA comparison table.
  • Prior-year contributions can be made only from January through the tax-filing deadline, April 15, 2024. 
  • IRA contributions are reported on Form 5498, which is typically sent at the end of May.
  • To prevent delays, you must provide investment instructions, including the account and fund(s) to be credited. Contributions cannot be processed until complete instructions are provided, which can impact the trade date and applicable tax year the contribution receives.
  • Contributions made from a bank account via Automated Clearing House (ACH) are credited to your American Funds account on the day they are received. It can take your bank up to 3 business days to debit your checking or savings account.

 

Popular tasks

Contribute online

Link your bank account to make IRA contributions online. Go to your account and click Buy.

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Contribute via check

Contribution checks and instructions can be mailed to a service center. 

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Automatic contribution

Automatically contribute a specified dollar amount. Go to your account and click Automatic Transactions.


Learn about the benefits of automatic plans.

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Contribute from another account

Make an IRA contribution from your individual or joint account. Go to your account and click Exchange.


Note: Exchanges between different accounts are considered a withdrawal and may be a taxable event. Consult a tax advisor for additional information.

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Link your bank account to easily make investments in your account at Capital Group

By linking your bank account, you can easily and securely invest via Automated Clearing House (ACH).
 

Just log in and click Set Up under Bank Information.

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Common questions

For 2023, the maximum contribution limit is $6,500 or 100% of taxable compensation, whichever is less.

For 2024, the maximum contribution limit is $7,000 or 100% of taxable compensation, whichever is less.

IRA owners who are age 50 or older by the end of the taxable year can make additional catch-up contributions of up to $1,000 annually. Contribution limits for Roth IRAs are reduced or eliminated at higher incomes.

Traditional and Roth IRA contributions must be made by the tax-filing deadline.

Contributions for the prior year can be made via ACH until market close, 4 p.m. ET, on the tax-filing deadline.

Generally, anyone with taxable compensation can contribute to an IRA.

To contribute to a Roth IRA, your modified adjusted gross income (MAGI) must be below certain limits. Review the eligibility section of the IRA comparison table for current MAGI limits.

You can reinvest all or part of an IRA distribution back into an IRA as a rollover if it’s within 60 calendar days from the date you received the distribution. The Internal Revenue Service (IRS) allows one rollover per owner per consecutive-12-month period.

After 60 days, the reinvestment is considered a personal contribution and is subject to traditional IRA limits and deadlines.

Note: The right of reinvestment policy allows money to be reinvested back into the same account, the same fund or another one of the American Funds within 90 days after the date of the distribution without paying a sales charge.

IRA contributions are reported on Form 5498, which is typically available by May 31.

Note: Form 5498 is not required to be filed with your tax return.

Contact us

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call (800) 421-4225
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
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