2023 IRA contribution and income limits: What retirement savers need to know

The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
The IRS has some good news for workers who use traditional or Roth IRAs to save for retirement. In 2023, you’ll be able to contribute an additional $500 to either account. It’s the first increase since 2019, bringing the total annual contribution limit to $6,500. Those age 50 and older can contribute an additional $1,000.
The IRS also increased the income ranges on IRAs, allowing you to earn more money and still take advantage of the tax-free Roth account or the tax-deferred traditional IRA.
You will also be able to save more through workplace retirement plans such as 401(k)s and 403(b)s in 2023 thanks to the latest annual adjustments. Here’s what else you need to know.
Good news for IRA contribution limits
Workers looking to take maximum advantage of their retirement accounts will be excited that the IRS increased the annual contribution limits on IRAs by $500, bringing the total to $6,500. Those aged 50 and older can contribute an additional $1,000 as a catch-up contribution, the same amount as 2022.
Maximum contributions to employer-sponsored plans got an even bigger boost to $22,500 for 2023, including popular 401(k) and 403(b) plans. Those over age 50 can make catch-up contributions of $7,500.
The contribution limit on a SIMPLE IRA, another workplace plan, also increased to $15,500 from $14,000 in 2022.
Higher income limits for IRAs
The good news for savers is that the income limits are climbing — albeit modestly — for IRAs. For 2023, the limits on modified adjusted gross income (MAGI) to be eligible for a Roth IRA can be seen in the table below.
FILING STATUS | MAXIMUM INCOME FOR FULL CONTRIBUTION | PHASES OUT AT |
---|---|---|
Individual, head of household | $138,000 | $153,000 |
Married filing jointly | $218,000 | $228,000 |
In 2022, the Roth IRA limits were $129,000 to $144,000 for individuals and heads of household, and $204,000 to $214,000 for married couples filing jointly.
However, if you still want to take advantage of the account, you may be able to use a backdoor Roth IRA, but you’ll want to be careful about the tax consequences.
For traditional IRAs, the limits on MAGI for deducting contributions to an IRA have also increased in 2023. Note that these limits apply only if you and your spouse are covered by a workplace retirement plan.
FILING STATUS | MAXIMUM INCOME FOR FULLY DEDUCTIBLE CONTRIBUTION | DEDUCTIBILITY PHASES OUT AT |
---|---|---|
Individual, head of household | $73,000 | $83,000 |
Married filing jointly | $116,000 | $136,000 |
If you and your spouse are not covered by an employer plan, your contributions are fully deductible regardless of your income.
Income limits are only one difference between the traditional IRA and the Roth IRA. Here are other key differences and which account is better for investors.
Bottom line
High inflation has increased the cost of living, so the IRS allows you to save more towards retirement because you’ll need more put away to maintain your standard of living. If you can, try to max out your employer-sponsored plans and your IRA. You might also consider a health savings account, which can be invested and comes with several tax advantages.
Note: Bankrate’s Brian Baker contributed to an update of this story.
Related Articles



10 of the biggest changes to retirement accounts due to new 401(k) and IRA rules
