2023's Traditional IRA Contribution Limits Are Higher Than Ever
If you want tax breaks for saving for retirement, individual retirement accounts are a great place to start. With the combination of an upfront deduction for contributions for many taxpayers and the ability to defer tax on income and gains until you make withdrawals, IRAs play a key role in the tax planning for millions of Americans.
Contribution limits for IRAs don't go up very often, but when they do, it's newsworthy. The Internal Revenue Service just released what the 2023 traditional IRA contribution limits are going to be, and the boost will be good news for those who like to max out their retirement savings year in and year out. Moreover, certain taxpayers will be able to earn a little more income before the tax benefits of traditional IRA contributions start to disappear.
The IRS revealed that traditional IRA contribution limits will be going up in 2023. Those who will be younger than 50 throughout 2023 will see their limit go up $500 to a total of $6,500. Those 50 or older by year-end in 2023 will get an additional $1,000 catch-up contribution, resulting in a new limit of $7,500 -- also up $500 from 2022's number.
Source Fool.com
