IRA Contribution Limits for 2023, 2022, and Prior Years

By Jackie Beck   Updated 11/05/2022 at 1:24 pm

IRA contribution limits can change from year to year, and the max amount you can put in also depends on your age.

Note that no matter what, the amount you put in can’t be more than your taxable compensation for the year.

Take a look below for the limits based on the kind of IRA. Remember that IRA is one of many retirement plan options available.

Traditional & Roth IRA Contribution Limits

Year   Normal LimitAge 50+ Limit
2023  $6,500$7,500 (includes $1,000 catch-up)
2022   $6,000$7,000 (includes $1,000 catch-up)
2021   $6,000$7,000 (includes $1,000 catch-up)
2020  $6,000$7,000 (includes $1,000 catch-up)
2019  $6,000$7,000 (includes $1,000 catch-up)
2018  $5,500$6,500 (includes $1,000 catch-up)
2017  $5,500$6,500 (includes $1,000 catch-up)

These contribution limits are total contribution limits for the year, not per type of IRA.

So for example, if you’re under age 50 in 2023, you could contribute up to $4,500 to a Roth IRA and up to $2,000 to a Traditional IRA for a total of up to $6,500. (Or any combo that adds up to the max.) If you’re age 50+, you can do an extra $1000 as a catch-up.

There used to be a rule that you had to stop contributing to your Traditional IRA starting the year you reached age 70½, but for tax years beginning after December 31, 2019 that rule has been repealed.

SEP IRA Contribution Limits

The contribution limits for a SEP IRA vary based on who is doing the contributing.

If you are the employer, the most you can contribute is the lesser of either:

  • 25% of the employee’s annual compensation, or
  • the same percentage of salary for each employee (Up to $66,000 in 2023, $61,000 in 2022, $58,000 in 2021, $57,000 in 2020, or $56,000 in 2019.)

Elective salary deferrals and catch-up contributions are not allowed in SEP plans.

If you are self-employed, the amount you are allowed to put in gets more complex. You must base your contribution on net profit – minus one-half of the self-employment tax – minus your SEP contribution. (The IRS has has more about this in Pub. 560.)

Summing Up

In summary, the IRA contribution limits vary depending on the year, your age, and your taxable compensation. If possible, putting in the max can be great! Be sure to talk with someone familiar with your situation and the rules. IRA contribution limits by year

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