Roth IRA Contribution Limits
The Roth IRA Contribution Limits refer to the maximum amount of money that an individual can contribute to a Roth Individual Retirement Account (IRA) in a given tax year. These limits can vary based on the individual’s filing status and age.
For the tax year 2023, the general contribution limit is $6,500 for individuals under the age of 50. Those aged 50 or older are allowed to make an additional catch-up contribution of $1,000, bringing their total limit to $7,500.
It’s important to note that these contribution limits are subject to income phase-out thresholds. For single filers, the ability to contribute to a Roth IRA begins to phase out at modified adjusted gross incomes (MAGI) of $138,000, and completely phases out at $153,000. For married couples filing jointly, the phase-out range is from $218,000 to $228,000.
Contributions must be made from earned income, and the total contributions cannot exceed the taxpayer’s earned income for the year.
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