IRA contribution limits

IRA contribution limits are the maximum amount you can contribute to your Individual Retirement Account each year. For 2023, the limit is $6,500, or $7,500 if you're age 50 or older, to help boost retirement savings. These limits apply to total contributions across all your traditional and Roth IRAs. Contributions must come from earned income, and the limits can change annually based on inflation. Contributing within these limits allows for potential tax advantages, like tax-deferred growth or tax-free withdrawals, depending on the IRA type. It's important to stay within these limits to avoid penalties and maximize your retirement benefits.