How much can a 40 year old contribute in 2023?

You are age 40 and earn $30,000 in 2023. Although you can contribute up to $6,500 for 2023, you contribute only $3,000. After April 15, 2024, you can’t make up the difference between your actual contributions for 2023 ($3,000) and your 2023 limit ($6,500). You can’t contribute $3,500 more than the limit for any later year.

How much can you contribute to a traditional IRA in 2023?

The annual contribution limit for a traditional IRA in 2023 was $6,500 or your taxable income, whichever was lower. If you were 50 or older by the end of 2023, you could have contributed up to $7,500 total. Contributions to a traditional IRA may be tax-deductible for some investors.

What is a 2023 IRA deduction?

Worksheet 2 shows that your 2023 IRA deduction is $6,770. You must either withdraw the contributions that are more than the deduction amount (the $730 show on line 8 of Worksheet 2) or treat the excess amounts as nondeductible contributions (in which case you must complete Form 8606 and attach it to your Form 1040-SR).