How much can I contribute to my IRA in 2023?

In this video I walk through the limits related to IRA contributions in 2023. The maximum contribution is $6,500 if you are under 50. If you are 50 or older by 12/31/23 you can contribute an additional $1,000 or a total of $7,500. You can choose to put any combination of the amount in either a Roth or a Traditional IRA assuming you qualify as long as the total amount is no more than the limit.

You are also limited to the maximum of your earnings per year, so if you only made $5,000 or you made $12,000 but contributed $8,000 to your 401(k) at work then your earned income that would be taxed would be $5,000 or $4,000 ($12,000 -$8,000) for the year.

There are also income maximums for Roth contributions because “wealthy” people aren’t permitted to contribute to a Roth IRA. Those limits are $153,000 if you are single and $228,000 if you are married filing jointly (MFJ). There is a phase out where a smaller amount is allowed starting at $138,000 single and $218,000 MFJ.

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Sean Moran is a financial advisor specializing in retirement planning, college planning, life insurance, disability insurance, Long Term Care insurance and a holistic approach to your personal finances.

Sean has clients in NJ, TN, VA, TX and would love to help you either locally or virtually.

Sean is an author, former corporate tax professional and entrepreneur. He holds a BS from York College of PA and a Masters of Taxation from Fairleigh Dickinson University.

If you are interested in learning more, you can contact Sean at: smoran@redbarnfinancial.com or schedule a meeting here: calendly.com/spmoran Red Barn Financial LLC offers securities through Ad Deum Funds, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitationfor the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance….(read more)

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With the year 2023 quickly approaching, it’s important to begin planning for your retirement savings. One of the best ways to save for retirement is through an Individual retirement account (IRA). But how much can you contribute to your IRA in 2023?

The maximum you can contribute to your IRA in 2023 depends on whether you are under 50 or over 50. For those under 50, the maximum contribution is $6,000. For those over 50, the maximum contribution is $7,000. This is due to the “catch-up” contribution, which allows those over 50 to save an extra $1,000 each year.

In addition to the maximum contribution, it’s important to consider income restrictions. If you are single and make less than $65,000 per year, you can contribute the full amount to your IRA in 2023. However, if you make more than $65,000 per year, your contribution will be limited. For those who are married and filing jointly, the income limit is $104,000 for full contributions.

It’s also important to note that there are two types of IRAs: traditional and Roth. With a traditional IRA, you can deduct your contributions from your taxes. However, with a Roth IRA, your contributions are not tax-deductible. It’s important to consider which type of IRA is best for you when deciding how much to contribute.

Finally, it’s important to remember that you can always contribute more than the maximum amount to your IRA in 2023. While the maximum contribution is $6,000 or $7,000, depending on your age, you can choose to contribute more to your IRA if you would like. This can be a great way to save more for retirement.

Overall, the amount you can contribute to your IRA in 2023 depends on your age and income. The maximum contribution is $6,000 or $7,000, depending on your age. It’s also important to consider whether a traditional or Roth IRA is best for you and whether you can contribute more than the maximum amount. By taking the time to consider these factors, you can ensure that you are saving the most for your retirement.