2023 Traditional and Roth IRA Contribution and Income Limits

In 2023, you can contribute up to $6,500 to a Traditional IRA or Roth IRA. There is also a $1,000 catch-up Contribution for those ages 50 and over, allowing you to contribute up to $7,500.
Advertising Disclosure.

Advertiser Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone. This article may contain links from our advertisers. For more information, please see our Advertising Policy.

Retirement-savings
Table of Contents
  1. Understanding the Traditional IRA and Roth IRA
  2. 2022 Traditional and Roth IRA Contribution Limits
  3. Traditional IRA Roth IRA Income Limits
    1. Traditional IRA Income Limits and Deduction Phase-Outs
    2. 2023 IRA Phase-Out Limits Chart
    3. Roth IRA Income Limits
    4. 2023 Roth IRA Income Limits Chart
    5. Did You Contribute Too Much to Your IRA?
  4. IRA Contribution Deadlines
  5. More Information About IRAs

Individual Retirement Arrangements (IRA) come in two flavors, Roth IRAs and traditional IRAs. While they are similar in some respects, there are two major differences that have a very powerful impact: how IRA contributions are taxed and income eligibility limits.

In 2023, you can contribute up to $6,500 to a traditional IRA or Roth IRA, a $500 increase from 2022. If you’re at least 50 years old you can save an additional $1,000 in catch-up contributions, for a total of $7,500.

Here’s what you need to know about traditional and Roth IRAs, contribution limits and income eligibility, according to the IRS.

Understanding the Traditional IRA and Roth IRA

There are two main types of IRA accounts available to most people: traditional and Roth IRA.

The short and quick explanation is that you make traditional IRA contributions with pre-tax money. The investments grow, then you pay taxes on the money and its growth when you withdraw it.

You can make Roth IRA contributions with money that you have already paid taxes on. It grows without the drag of taxes, so you can withdraw it without any additional taxation.

Both traditional and Roth IRAs are subject to certain income limits and other rules for deductions and eligibility.

2022 Traditional and Roth IRA Contribution Limits

If you are younger than 50 years old, $6,500 is the maximum amount you can invest in a traditional or Roth IRA. If you are 50 or older, you are eligible for a catch-up contribution of $1,000 and can contribute up to $7,500.

The IRA contribution limit applies to all your individual IRA accounts (self-employed retirement plans may have different rules). For example, you could contribute $3,000 to a traditional IRA and $3,000 to Roth IRA – or any combination, so long as the total does not exceed $6,500.

The following chart shows historical IRA contribution limits.

Tax YearContribution Limit
Age 49 or Younger
Catch-Up Contribution
Limit Age 50 or Older
Contribution Limit
Age 50 or Older
2023$6,500$1,000$7,500
2019 - 2022$6,000$1,000$7,000
2013 - 2018$5,500$1,000$6,500
2008 - 2012$5,000$1,000$6,000
2006 - 2007$4,000$1,000$5,000
2005$4,000$500$4,500
2002 - 2004$3,000$500$3,500

Traditional IRA Roth IRA Income Limits

Your modified adjusted gross income (MAGI) determines your eligibility to make a tax-deductible contributions to a traditional or Roth IRA. You can see your MAGI on your tax form.

Here are the 2023 IRA income limits, according to the IRS.

Traditional IRA Income Limits and Deduction Phase-Outs

The traditional IRA phase-out schedule determines whether or not you can deduct your contributions against your taxes. The phase-out for traditional IRA deductions for single filers begins at $73,000 and ends at $83,000 in 2023. The range for married filing jointly is between $116,000 and $136,000.

If your income is below these levels, you can deduct the full amount of your IRA contributions when you file your taxes. You can not deduct your IRA contributions when you file your taxes if you earn more than the phase-out threshold for your filing status.

If you earn more than the phase-out limit for your tax filing status, you can still contribute to a traditional IRA. You just can’t deduct your contributions from your taxes.

However, contributing to a nondeductible traditional IRA may still be a good investment for high-earners who don’t meat Roth IRA qualifications. You can open a nondeductible IRA to transfer into a back-door Roth IRA later.

2023 IRA Phase-Out Limits Chart

Filing StatusModified AGIDeduction
Single or head of household$73,000 or lessFull deduction up to the amount of your contribution limit
More than $73,000 but less than $83,000Partial deduction
$83,000 or moreNo deduction.
Married filing jointly or qualifying widow(er)$116,000 or lessFull deduction up to the amount of your contribution limit
More than $116,000 but less than $136,000Partial deduction
$136,000 or moreNo deduction
Married filing separatelyLess than $10,000Partial deduction
$10,000 or moreNo deduction
If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status.

Roth IRA Income Limits

The IRS has specific income restrictions that determine who can contribute to Roth IRAs.

Income limits based on your Roth IRA eligibility phase out for single filers with a MAGI between $138,000 and $153,000, and between $218,000 and $228,000 for married couples who file jointly.

If you exceed these income limits, you may want to consider contributing to a non-deductible traditional IRA, which allows you to contribute up to the $6,000 IRA limit each year. You can roll these contributions in to a Roth IRA later.

2023 Roth IRA Income Limits Chart

Filing StatusModified AGI Allowable Contribution
Married filing jointly or qualifying widow(er)$218,000 or lessUp to the annual contribution limit
More than $218,000 but less than $228,000Partial amount
$228,000 or moreNo contribution
Married filing separately and you lived with your spouse at any time during the yearLess than $10,000Reduced amount
$10,000 or moreNo contribution
Single, head of household or married filing separately and you did not live with your spouse at any time during the year$138,000 or lessNo contribution
More than $138,000 but less than $153,000Partial contribution
$153,000 or moreNo contribution

Did You Contribute Too Much to Your IRA?

Deduction and phase-out limits may affect your ability to make contributions. Here’s what happens if you contribute too much to an IRA.

IRA Contribution Deadlines

Tax season is a great reminder to make retirement account contributions if you didn’t do it throughout the previous calendar year. You can make Roth and traditional IRA contributions for the previous tax year until the tax filing deadline in April, according to the Internal Revenue Code.

However, you may need to specify the tax year you want to contribute. You can choose to contribute to the last year’s or the current year’s IRA limit between Jan. 2 and April 15.

More Information About IRAs

Individual Retirement Arrangements (IRAs) are great investment vehicles. Benefits you receive from tax deferrals are a great way to grow your investments.

If possible try to max out your IRA investment each year.

About Post Author

Get Instant Access
FREE Weekly Updates! Enter your information to join our mailing list.

Posted In:

About Ryan Guina

Ryan Guina is The Military Wallet's founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Illinois Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life.

Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free Personal Capital account here.

Featured In: Ryan's writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine (print and online editions), Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

Reader Interactions

Leave A Comment:

Comments:

About the comments on this site:

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

The Military Wallet is a property of Three Creeks Media. Neither The Military Wallet nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on The Military Wallet is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on The Military Wallet should not be attributed to the Dept. of Veterans Affairs, the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on The Military Wallet is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertising Notice: The Military Wallet and Three Creeks Media, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet; For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked and this compensation may affect how, where and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on The Military Wallet may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of  The Military Wallet.