2022-2023 Contribution Limits

Type Of Contribution 2022 Contribution Limits 2022 Deadlines 2023 Contribution Limits 2023 Deadlines
Traditional IRA
$6,500
APRIL 18, 2023
$6,500
APRIL 15, 2024
Roth IRA
$6,500
APRIL 18, 2023
$6,500
APRIL 15, 2024
Catch-Up*
$1,000
($7,500 MAXIMUM)
APRIL 18, 2023
$1,000
($7,500 MAXIMUM)
APRIL 15, 2024
Coverdell
$2,000
APRIL 18, 2023
$2,000
APRIL 15, 2024

*For IRA holders 50 or older by December 31st of contribution year.

Choose the IRA that meets your needs

Relax and watch your money grow, when you're tucking it away in an Individual Retirement Account. Our Traditional, Roth or Coverdell Education Savings Account IRAs can meet your future financial needs.

Follow these general rules of thumb in choosing the right IRA:

  1. Choose a Roth IRA if you don't need the tax break right now. It's a more flexible investment because:
    • You can withdraw regular contributions at any time, tax-free and penalty-free.
    • You do not have to take mandatory distributions.
    • Earnings are tax-free if account is open 5 yrs. and withdrawn for a qualified reason.
  2. Choose a traditional IRA if you want the tax deduction right now. It also makes sense if you anticipate paying taxes at a significantly lower rate in retirement.

Coverdell ESAs offer tax-free distributions for certain qualified education expenses and unlike section 529 plans, can be used for elementary and high school expenses at most public, private, and parochial schools.

2023 IRA Contribution and Deduction Limits

2023 Combined Traditional and Roth IRA Contribution Limits:
If you are under 50 years of age at the end of 2023: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,500 or the amount of your taxable compensation for 2023. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,500.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

If you are 50 years of age or older before the end of 2023:
The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $7,500 or the amount of your taxable compensation for 2023. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $7,500. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income. 

www.irs.gov

Looking for Additional IRA Information?

For more information on IRA changes or to open an IRA at Diamond Valley Federal Credit Union, contact DVFCU using the button below or call 812-425-5152.

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