2023 IRA Contribution & Income Limits Update
Cheat sheet for the updated income and contribution limits.
It’s a new year, and that means new rules for saving for retirement.
Contribution Limits
The IRS has changed the maximum amount people are eligible to contribute to their IRA and 401k in 2023. The new, 2023 contribution limits:
- IRAs = $6,500
- 401(k)s = $22,500
For IRAs, the limit on annual contributions increased to $6,500, up from $6,000. If you’re over 50 and eligible for catch-up contributions, that number rises to $7,500 (up from $7,000). The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $22,500, up from $20,500.
Roth IRA Income Limits
If you’re a single filer, you can make a maximum contribution of $6,500 if you make less than $138,000. If you’re married and filing jointly, your MAGI (modified adjusted gross income) must be below $218,000 to make the full contribution.
Traditional IRA Income Limits
If you’re a single filer, you can take the full $6,500 deduction if you make $73,000 or less. If you’re married, filing jointly, and participating in a retirement plan at work, that number rises to $116,000. If you’re married, filing jointly, and your spouse participates in a retirement plan at work (but you don’t), your MAGI must be below $218,000 to take the full deduction.
If you’re looking to open a Roth IRA, Traditional IRA, or another type of retirement account — you can start the process here.
