Traditional IRA – If you are under age 50 in 2023 the maximum IRA limit for contributions that you can make is $6,500, up to the amount you make in taxable income in 2023. For example, if you only make $4,000 , this is the maximum you can contribute. If you turn 50 or older in 2023, the maximum you can contribute to your IRA account is $7,500, up to but not exceeding your 2023 taxable income. This amount includes the $6,000 limit that everyone qualifies for, as well as an additional $1,000 catch-up contribution. All and/or part of your contributions may be tax deductible.
Roth IRA – If you have both a traditional IRA and a Roth IRA, it is important to know that the 2023 limits apply to combined contributions. Therefore, if you are under age 50, you can invest $2,000 into your traditional IRA and up to a $4,500 maximum into your Roth IRA, or any other combination as long as the total doesn’t exceed $6,500. If you are over 50, any combination of investment up to $7,500 is allowed by the federal government. If you have a Roth IRA only, then your maximum 2023 contribution limit is $6,500, and if you are over 50, your maximum contribution limit is $7,500.
Rollovers and Transfers from a pension, profit sharing, 401K retirement plan or tax sheltered annuity will retain the tax deferred status.