IRA Contribution Limits | Custodian - Millennium Trust Company

IRA Contribution Limits

Every year, the IRS announces changes, if any, to the contribution limits and income thresholds for Individual Retirement Accounts (IRAs).

We've created several tables below to help you determine your IRA contribution and deduction limitations for individual (Traditional and Roth IRAs) and small business/self-employed (SIMPLE and SEP IRAs) for 2022 and 2023.

Individual Retirement Accounts
  Individual Contribution Individual Catch-up Contribution 1
  2022 2023 2022 & 2023
Traditional IRA          Up to $6,000 Up to $6,500 Up to $1,000
Roth IRA Up to $6,000 Up to $6,500 Up to $1,000

 

If you are covered by a retirement plan at work, use the table below to determine if your Modified Adjusted Gross Income (MAGI) affect the amount of your deduction.

Traditional IRA Deductibility Modified Adjusted Gross Income(MAGI)Thresholds
(If your filing status is...)

Tax Year Full Deduction Partial Deduction No Deduction
Single Individuals or Head of Household 2022  $68,000 $68,000-$78,000  $78,000
2023  $73,000 $73,000-$83,000  $83,000
Married, Filing a Joint Tax Return or Qualifying Widow(er) 2022  $109,000 $109,000-$129,000  $129,000
2023  $116,000 $116,000-$136,000  $136,000
Married, Filing Separate Tax Returns 2022 N/A $0-$10,000  $10,000
2023 N/A $0-$10,000  $10,000
Spouse  2022  $204,000 $204,000-$214,000  $214,000
2023  $218,000 $218,000-$228,000  $228,000

 

Roth IRA Eligibility MAGI Thresholds Tax Year Full Contribution Partial Contribution No Contribution
Single Individuals or Head of Household 2022  $129,000 $129,000-$144,000  $144,000
2023  $138,000 $138,000-$153,000  $153,000
Married, Filing a Joint Tax Return or Qualifying Widow(er) 2022  $204,000 $204,000-$214,000  $214,000
2023  $218,000 $218,000-$228,000  $228,000
Married, Filing Separate Tax Returns 2022 N/A $0-$10,000  $10,000
2023 N/A $0-$10,000  $10,000

 

Employer Sponsored Retirement Accounts3, 4
  Participant Contribution Limit Participant Catch-up Contribution1 Total maximum allocation to participant's account (employer & participant contributions5)
  2022   2023 2022   2023 2022 2023
SEP2 IRA N/A N/A N/A N/A 25% of participant's compensation or $61,000, whichever is less 25% of participant's compensation or $66,000, whichever is less
SIMPLE IRA $14,000 $15,500 $3,000 $3,500 $28,000 ($14,000 participant + $14,000 employer match; employer match limited to 3% compensation) $31,000 ($15,500 participant + $15,500 employer match; employer match limited to 3% compensation)
  1. Catch-up contributions are allowed for individuals age 50 or older.
  2. SEP IRAs are generally funded solely by employer contributions; Participant does not contribute.
  3. The information in this chart does not apply to self-employed individuals.
  4. Additional or smaller limitations may exist in plan documents.
  5. Maximums shown here may not include catch-up contributions. For participants in more than one retirement plan, the limits must be aggregated. You may wish to discuss with your tax advisor.
 
The material on this page is for informational purposes only. Millennium Trust Company performs the duties of a directed custodian and as such does not provide investment, legal or tax advice.