Non Deductible IRA Contribution Income Limits 2023
An Individual Retirement Account (IRA) is a great option for individuals who want to save for retirement. But not all contributions to an IRA are deductible. Contributions to a traditional IRA may or may not be deductible, depending on your modified adjusted gross income (MAGI). The IRS sets income limits every year for individuals who can make a deductible contribution to an IRA. The income limits for 2023 are based on your filing status.
Income Limits for 2023
For single taxpayers and head of household taxpayers, the MAGI limit for a full deduction for those who are covered by an employer-sponsored retirement plan is $66,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for a full deduction. For married couples filing jointly, the MAGI limit for a full deduction for those who are covered by an employer-sponsored retirement plan is $105,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for a full deduction.
Partial Deduction for Those Above The Limit
For single taxpayers and head of household taxpayers, the MAGI limit for a partial deduction for those who are covered by an employer-sponsored retirement plan is $76,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for a partial deduction. For married couples filing jointly, the MAGI limit for a partial deduction for those who are covered by an employer-sponsored retirement plan is $198,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for a partial deduction.
No Deduction for Those Above The Limit
For single taxpayers and head of household taxpayers, the MAGI limit for no deduction for those who are covered by an employer-sponsored retirement plan is $86,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for no deduction. For married couples filing jointly, the MAGI limit for no deduction for those who are covered by an employer-sponsored retirement plan is $208,000. Those who are not covered by an employer-sponsored retirement plan have no income limit for no deduction.
Contribution Limits for 2023
The maximum contribution limit for individuals who are under the age of 50 is $6,000 for 2023. For those who are over the age of 50, the maximum contribution limit is $7,000 for 2023. This limit applies regardless of whether you are eligible for a full deduction, partial deduction, or no deduction. The contribution limit is the same for both traditional and Roth IRAs.
Deadline to Contribute to an IRA
The deadline to contribute to an IRA is April 15th of the following year. For example, the deadline to contribute to an IRA for 2023 is April 15, 2024. Contributions made after this date will not be accepted by the IRS and any contribution made after this date will not be deductible.
Roth IRA Income Limits
Roth IRAs do not have the same income limits as traditional IRAs. The income limits for Roth IRAs are based on your filing status and your modified adjusted gross income (MAGI). For single taxpayers, the MAGI limit for a full contribution is $125,000. For married couples filing jointly, the MAGI limit for a full contribution is $198,000. For those who are above the MAGI limit, partial contributions may be made. Those who are above the MAGI limit for a partial contribution cannot contribute more than $4,000 for 2023.
Catch-Up Contributions
Individuals who are over the age of 50 are allowed to make catch-up contributions to their IRA. The catch-up contribution limit for individuals who are over the age of 50 is $1,000 for 2023. This limit applies to both traditional and Roth IRAs. The catch-up contribution limit is in addition to the regular contribution limit.
Conclusion
The 2023 non deductible IRA contribution income limits are based on your filing status and modified adjusted gross income (MAGI). The contribution limit for individuals under the age of 50 is $6,000 for 2023 and the contribution limit for those over the age of 50 is $7,000 for 2023. The deadline to contribute to an IRA for 2023 is April 15, 2024. Roth IRAs have different income limits and partial contributions may be made for those who are above the MAGI limit. Individuals who are over the age of 50 are allowed to make catch-up contributions of $1,000 for 2023.