IRA & Other Qualified Plan Contribution Limitations

2023 IRS RETIREMENT PLAN AND IRA CONTRIBUTION LIMITS PLUS OTHER LIMITS AND THRESHOLDS:

 

TRADITIONAL & ROTH IRA CONTRIBUTION LIMITS:

 

TRADITIONAL: $6,500

 

ROTH: $6,500

 

CATCH-UP: $1,000 (FOR THOSE AGE 50 AND OLDER)

 

TRADITIONAL IRA DEDUCTIBILITY PHASEOUT:    MAGI RANGE

 


  • SINGLE FILERS COVERED BY EMPLOYER PLAN:  $ 73,000 – $83,000



 



  • MARRIED - FILING JOINTLY, CONTRIBUTOR COVERED BY EMPLOYER PLAN:    $218,000 - $228,000



 



  • JOINT FILIERS WITH BOTH COVERED BY EMPLOYER PLAN:    $116,000 - $136,000



 


ROTH IRA ELIGIBILITY PHASEOUT MAGI RANGE:


 



  • SINGLE FILERS / HEAD OF HOUSEHOLD:                             $ <138,000



 



  • MARRIED COUPLES FILING JOINTLY:                                    $ <218,000



 


 


NOTE: THERE IS NO LONGER AN INCOME LIMITATION FOR CONVERING A YOUR TRADITIONAL IRA TO A ROTH IRA. 


 


IRA SEP CONTRIBUTION LIMITS:


 


COMPANY MAY CONTRIBUTE THE LESSER OF 25% OF COMPENSATION OR $66,000


 


COMPENSATION LIMIT IS 20 % FOR “SOLE PROPRIETORS”


 


SIMPLE IRA CONTRIBUTIOON LIMITS:


 


SALARY DEFERRAL UP TO $15,000


 


CATCH-UP CONTRIBUTION LIMIT:  $3,500 (AGE 50 AND OLDER)


 


EMPLOYER MATCH (UP TO 3%) OR NON-ELECTIVE CONTRIBUTION OF (2%)


 


EMPLOYER SPONSORED PLANS:


401-K, 403-B AND 457 PLAN CONTRIBUTION LIMITS: $22,500


CATCH-UP CONTRIBUTIONS: (AGE 50 & OVER) $7,500


 


NOTE: The annual compensation limit under Sections 401(a) (17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) increased to $330,000.


 


 


ESTATE & GIFT TAX EXCLUSION/EXEMPTION* AMOUNTS:


 


INDIVIDUAL LIFETIME EXCLUSION:                                       $12,920,000


 


MARRIED COUPLES COMBINED EXCLUSION:                      $25,840,000


 


ANNUAL GIFT TAX EXCLUSION:                                                   $17,000


 


*This means an individual can leave $5.79 million to heirs and pay no federal estate or gift tax and a married couple will be able to shield $11.58 million from federal estate and gift taxes.


 


*For the annual gift, the exclusion remains the same at $17,000. Which means that any individual, if they so desire can gift up to $17,000 to any person they choose and to as many as they choose without any federal gift tax due or payable and without any reporting requirements to the IRS.


 


NOTE: These amounts and requirements are indexed annually for inflation and subject to change by the Federal Government at any time. Additionally, these exclusion amounts are relevant to Federal Gift and Estate Tax only and does not apply to any State rules or obligations.