Newburg | CPA News Brief

Newburg Staff Writer

March 21, 2023

Individual Retirement Accounts (IRAs) are a common way to save for retirement. If you currently have an IRA, or are considering opening one soon, there are several year-end rules that you should know.

  • Contribution Limits:  You may contribute up to a maximum of $6,000 ($7,000 if you are age 50 or older) to a traditional or Roth IRA annually.
  • If you file a joint return, you and your spouse can each contribute to an IRA even if only one of you has taxable compensation.
  • In some cases, you may need to reduce your deduction for traditional IRA contributions. This rule applies if you or your spouse has a retirement plan at work and your income is above a certain level.
  • The deadline for making IRA contributions for 2022 is April 18, 2023.

The 2022 contribution limits for Roth IRAs can be found below.

If your filing status is… And your modified AGI is… Then you can contribute…
married filing jointly or qualifying widow(er) < $204,000 up to the limit
married filing jointly or qualifying widow(er) > $204,000 but < $214,000 a reduced amount
married filing jointly or qualifying widow(er) > $214,000 zero
married filing separately and you lived with your spouse at any time during the year < $10,000 a reduced amount
married filing separately and you lived with your spouse at any time during the year > $10,000 zero
singlehead of household, or married filing separately and you did not live with your spouse at any time during the year < $129,000 up to the limit
singlehead of household, or married filing separately and you did not live with your spouse at any time during the year > $129,000 but < $144,000 a reduced amount
singlehead of household, or married filing separately and you did not live with your spouse at any time during the year > $144,000 zero

 

We are happy to answer any questions you might have about IRA contributions. Feel free to contact us at info@newburg.com.

Newburg | CPA

Newburg CPA, a Boston-based accounting firm can assist you. Contact us if you have questions.