How much can you contribute to a Roth IRA in 2023?

Roth IRAs offer some significant tax benefits, but, like all tax-advantaged retirement accounts, they're subject to annual contribution limits set by the IRS. In 2023, the Roth IRA contribution limits for most people are $6,500, or $7,500 if you're 50 or older. In 2024, these limits are $7,000, or $8,000 if you're 50 or older.

How much can you contribute to a Roth IRA?

Each year, the IRS sets a contribution limit for your Roth IRA. You could contribute up to the full contribution limit, or up to 100% of your income, whichever is less. You have up until the federal tax deadline in the following calendar year to contribute to your Roth IRA.

How often do Roth IRA income limits change?

The IRS updates the Roth IRA income limits every year to account for inflation and other changes. IRS Publication 590-A provides a worksheet to figure out MAGI and the allowable contribution amounts. Married filing separately and head of household filers can use the limits for single people if they have not lived with their spouse in the past year.