Roth IRA Contribution Limits 2023 Filing Jointly
Roth IRA contributions are an important part of retirement planning for many people. The amount that can be contributed to a Roth IRA every year is limited, however, and the limits change from year to year. For the 2023 tax filing season, the contribution limits for couples filing jointly are higher than in previous years.
For tax year 2023, couples who file their taxes jointly can contribute a total of up to $6,000 to a Roth IRA. This is the highest limit allowed since the Roth IRA was introduced in 1998. This amount is double the amount allowed for individuals, who can contribute up to $3,000 each year. The contribution limit for couples filing jointly was $5,500 for the 2020 tax year.
Couples filing jointly who are age 50 or older can make an additional "catch-up" contribution of up to $1,000. This brings their total contribution limit to $7,000. Individuals who are 50 or older can make a catch-up contribution of up to $1,000, bringing their total contribution limit to $4,000.
The Roth IRA contribution limits for couples filing jointly are based on the Modified Adjusted Gross Income (MAGI) of the couple. The amount of the contribution is reduced or completely phased out for couples whose MAGI falls within certain ranges. For couples filing jointly, the phase-out range is between $198,000 and $208,000. If a couple's MAGI falls within this range, they cannot contribute the full $6,000/$7,000 to their Roth IRA.
It's important to note that the Roth IRA contribution limits apply to the total amount contributed to all Roth IRAs owned by the couple. This means that if a couple has two Roth IRAs, they can contribute a combined total of up to $6,000/$7,000 to both accounts. They cannot contribute $6,000 to one account and $7,000 to the other.
Roth IRA contributions can be a great way to save for retirement, and the higher contribution limits for couples filing jointly in 2023 make it even easier for couples to save. However, it's important to make sure that contributions are made within the allowed limits, as contributions that exceed the limits can result in penalties.
In addition to the contribution limits, couples should also be aware of the income limits for Roth IRAs. Couples who make more than the maximum amount allowed cannot make any contributions to a Roth IRA. For tax year 2023, the income limit is $208,000 for couples filing jointly.
Roth IRA contribution limits are subject to change from year to year, so it's important for couples to stay informed about the current limits. With the higher contribution limits for couples filing jointly in 2023, it's a great time for couples to take advantage of this tax-advantaged retirement savings vehicle.
Conclusion
The Roth IRA contribution limits for couples filing jointly in 2023 are higher than they have been in previous years, making it a great time for couples to take advantage of this tax-advantaged retirement savings vehicle. Couples should make sure to stay informed of the current contribution limits and income limits to ensure that their contributions are made within the allowed limits.