The Internal Revenue Service raised the IRA Contribution Limits for 2023 by $500 over 2022, from $6,000 last year for those under 50 to $6,500 currently. At the same time, individuals whose age is more than 50, their IRA contribution limit has increased from $7,000 to $7,500. To get detailed information subject to Individual Retirement Account contribution limits and tax deduction you need to stay tuned till the very end of this writing.
IRA Contribution Limits 2023
By contributing to an Individual Retirement Account an individual can boost his/her retirement savings, it even helps investors in getting tax deductions, it was officially announced by the Internal Revenue Service that contribution limits have been exceeded by $500 compared to 2022, i.e. now the contribution limit is $6,500 for below 50 year and $7,500 for above 50 year individuals.
If an individual or his wife is not covered under the employer-sponsored retirement plan then he/she can deduct his/her full contribution from the tax. IRA CONTRIBUTION LIMITS 2023 for the employees participated under the 401(k), 403(b), 457 plans, and Thrift Savings Plan is $22,500.
Traditional IRA Contribution Tax Deduction
One can get full deduction upto $6,500 or ₹7,500 on traditional IRA if he and his wife is never covered under the employer-sponsored retirement plan, if both (husband and wife) are covered under it then they will will get traditional IRA contribution tax deduction on the basis of his Modified Adjusted Gross Income, get details about it from the table, which is available below.
| Filing Status | 2023 Income | Deduction |
| Single, head of household or qualifying widow(er) | Less than $73,000 | Full deduction up to the contribution limit |
| $73,000 to $83,000 | Partial deduction | |
| More than $83,000 | No deduction | |
| Married filing jointly or qualifying widow(er) | Less than $116,000 | Full deduction up to the contribution limit |
| $116,000 to $136,000 | Partial deduction | |
| More than $136,000 | No deduction | |
| Married filing separately | Less than $10,000 | Partial deduction |
| More than $10,000 | No deduction |
If one of the married couples is not covered under an employer-sponsored retirement plan, there is a separate Income threshold for them, which we have shared below. By going to the table below such a couple can know the amount of their tax deduction for traditional IRA (Individual Retirement Account).
| Filing Status | 2023 Income | Deduction |
| Married filing jointly | $218,000 or less | Full |
| $218,000 to $228,000 | Partial | |
| $228,000 or more | None | |
| Married filing separately | Less than $10,000 | Partial |
| $10,000 or more | None |
In order to cross check all details about the Tax Deductions for Traditional IRA Contributions you may visit the official website of the Internal Revenue Service, irs.gov/.
Tax Deductions for Roth IRA Contributions
The annual contribution limit for the Roth Individual Retirement Account is the same as traditional IRA, an individual who is below 50 years and above 50 years has contribution limits of $6,500 and $7,500, respectively, you can only contribute to it if your income is above the threshold available below inside the table.
| Filing Status | 2023 Income | Deduction |
| Single, head of household or married filing separately (and you did not live with your spouse at any time during the year) | Less than $138,000 | Up to the annual limit |
| $138,000 to $153,000 | A reduced amount | |
| More than $153,000 | Zero | |
| Married filing jointly or qualified widow(er) | Less than $218,000 | Up to the annual limit |
| $218,000 to $228,000 | A reduced amount | |
| More than $228,000 | Zero | |
| Married filing separately | Less than $10,000 | A reduced amount |
| More than $10,000 | Zero |
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IRA Contribution Limits 2023: FAQs
What is the Traditional and Roth IRA Contribution limit for below and above 50 year olds?
Traditional and Roth IRA Contribution limit for below and above 50 year olds is $6,500 and $7,500, respectively.
What are Tax Deductions for traditional IRA Contributions for a couple not covered under employer-sponsored retirement plan?
A couple who is not covered under employer-sponsored retirement plan can get Tax deduction upto $6,500 or $7,500 for traditional IRA contributions.
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