Individual retirement accounts (IRAs) are among the most common ways to save for retirement. But if you own an IRA and you're not fully funding it each year, you could be missing an opportunity for your investments to grow tax-deferred. Two of the most frequently asked questions about IRAs are, "What are the IRA contribution limits?" and, "When is the IRA contribution deadline?" Below are the current Roth IRA and traditional contribution limits and deadlines as well as details on how you can take advantage of these retirement savings options.
Contributions can be made at any time during the year up to the tax-filing deadline, not including extensions, generally April 15. The deadline for 2022 contributions is April 18, 2023. The deadline for 2023 contributions is April 15, 2024.
Individuals can contribute up to the lesser of 100% of taxable compensation or the applicable limit below.
2022 contribution limits
- Age 49 and under: $6,000
- Age 50 and over: $7,000
2023 contribution limits
- Age 49 and under: $6,500
- Age 50 and over: $7,500
To make an IRA contribution, you have to be eligible, which means you must either:
Have taxable compensation, or
Have a spouse with taxable compensation and file a joint tax return.
In addition, if your income exceeds certain levels, the maximum Roth IRA contribution may be lower than the above amounts, or you may not be able to contribute to a Roth IRA at all. It's all based on your modified adjusted gross income, or MAGI. If your MAGI falls in the "partial" range, your tax advisor can help determine your exact IRA contribution maximum.
Remember, the earlier you contribute to your IRA, the more time your money has to benefit from potential growth. Visit our retirement calculator to see the impact time has on potential growth.
For more details about IRA requirements, visit the IRS website.
MAGI Roth IRA contribution limits - Individual filer
|Less than $129,000||Full|
|$129,000 - $143,999||Partial|
|$144,000 or more||None|
|Less than $138,000||Full|
|$138,000 - $152,999||Partial|
|$153,000 or more||None|
MAGI Roth IRA contribution limits - Married filing jointly
|Less than $204,000||Full|
|$214,000 or more||None|
|Less than $218,000||Full|
MAGI Roth IRA contribution limits - Married filing separately
|2022 and 2023 MAGI||Amount|
|$1 - $9,999||Partial|
|$10,000 or more||None|
Don't miss out
A Roth or traditional IRA can be an essential part of your retirement savings strategy. It offers a tax-advantaged way to help build your retirement nest egg. Even if you have a retirement plan at work, you can contribute to an IRA.
Don't pass up this opportunity to help prepare for your financial future. Your Edward Jones financial advisor can answer your questions, review your current savings and help you develop a personalized strategy to achieve your retirement goals.
Traditional: Early distributions may be subject to tax and a 10% penalty if you take a distribution before reaching age 59½.
Roth: Earnings distributions may be subject to tax and a 10% penalty if the account is less than five years old and the owner is younger than 59½.