A Roth IRA comes with seriously sweet benefits for retirement savers.
Its an individual retirement account that means you open and fund it, not your employer.
Heres the best thing about it: You invest money youve already paid taxes on.
Here are the Roth IRA limits it’s crucial that you know about.
Roth IRA Limits for 2023
The IRS typically adjusts Roth IRA contribution and income limits every year.
These are the limits for 2023.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
If youre under age 50, you could contribute up to $6,500 to an IRA in 2023.
Thats a $500 increase from the $6,000 limit in 2022.
Note that these are the limits for your overall IRA contributions.
What about married people?
A couple cant open an IRA.
Remember: Its anindividualretirement account.
Youre eligible to contribute if your income falls within these thresholds for 2023.
That means you might leave it to a beneficiary who can make tax-free withdrawals on it after you die.
Early means before before the account is 5 years old and before you reach age 59-1/2.
you’re able to, however, withdraw your contributions at any time.
Here are three ways that wont get you in trouble with the IRS.
If youre 50 or older, the maximum contribution is $30,000 ($27,000 in 2022).
Well, theres an exception.
If your spouse is 50 or older, you contribute an extra $1,000 in both 2022 and 2023.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
