The calendar may have flipped to 2023, but you still have a few months to make
Maxing out your IRA contribution is beneficial for your financial future. Not only can contributions to a traditional IRA help lower your taxable income and potentially reduce the amount of taxes you owe, but it also can help you save for retirement. When you make Roth IRA contributions, your money goes into an account that grows tax-free, which means
If you were unaware that you can still contribute to an IRA after Jan. 1, you're not alone. Only 45% of respondents to
Here's everything you need to know about the upcoming deadline and how much you can contribute for 2022 and 2023.
When is the IRA contribution deadline?
You have until April 18, 2023, to contribute to your traditional or Roth IRA and have it count as a 2022 contribution. For 2023 contributions, you have until April 15, 2024.
Do IRA contributions have to be postmarked by April 18?
The easiest way to get your contribution in on time and allocated to the correct tax year is to do so online no later than April 18. Make sure you designate it as a 2022 contribution, so it doesn't get allocated to 2023.
If you prefer to mail a check for your IRA contribution, it must be postmarked by April 18, 2023, and designated as a 2022 contribution to be accepted for the prior tax year. Any contributions postmarked after that date are allocated to 2023.
Can you open an IRA in 2023 & contribute for 2022?
If you didn't have an open IRA account in 2022, it's not too late to open one. IRAs must be established by the tax filing deadline (without extensions) for the tax year in which your qualifying contributions apply. This means even if you don't have an IRA account, you have until April 18, 2023, to open one and potentially make a tax-deductible contribution for 2022.
Other retirement account contribution deadlines
If you have other retirement accounts, the deadline for contributions may be different than the IRA contribution deadline.
SEP IRA
The deadline for contributing to a
SIMPLE IRA
401(k) and 403(b) plans
IRA contribution limits for 2022 & 2023
Making IRA contributions is a great way to save for retirement and potentially reduce your taxable income. The contribution limits change from year to year, so it's essential to stay up to date on the current rules.
| 2022 Contribution Limits | 2023 Contribution Limits |
Traditional & Roth IRA contribution limit | $6,000 | $6,500 |
Catch-up contributions for those 50 and older | $1,000 | $1,000 |
Contributing to an IRA is a great way to bolster your retirement savings. And if you act before April 18, 2023, you can make contributions for the 2022 tax year and potentially lower your tax bill. Additionally, you can contribute for both 2022 and 2023 and increase your ability for compound savings.
If navigating all of the options out there feels tricky,