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 |
single, head 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 |
single, head 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 |
single, head 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.