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2023-roth-ira-income-limits-eligibility-and-qualifications

2023 Roth IRA Income Limits: Eligibility And Qualifications

Securing a future with secure finances requires planning for retirement. A Roth Individual Retirement Account (IRA) is a well-liked method of saving for retirement. 

The Roth IRA gives people the chance to grow their funds tax-free due to its special tax advantages. However, it is essential to keep up with the most recent rules and regulations pertaining to Roth IRA contributions.

 Based on data from Marca.com, we will explore the specifics of the 2023 Roth IRA income restrictions, eligibility requirements, and qualifications in this post.

An after-tax contribution can be made to a Roth IRA, which is a type of retirement savings account. 

A Roth IRA’s main benefit is that it allows for tax-free growth and withdrawals throughout retirement. This means that, provided certain requirements are met, any earnings in the account are not subject to federal income tax.

The income restrictions for Roth IRA contributions in 2023 are as follows, using the data published by Marca.com:

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Stricter Income Restrictions For Married Filing Separately

2023-roth-ira-income-limits-eligibility-and-qualifications
Securing a future with secure finances requires planning for retirement. A Roth Individual Retirement Account (IRA) is a well-liked method of saving for retirement.

The entire contribution maximum ($6,000 for those under 50 and $7,000 for those over 50) is applicable to people with modified adjusted gross incomes (MAGIs) of less than $125,000.

A lower contribution cap is available to those whose MAGIs are between $125,000 and $140,000. MAGIs of more than $140,000 disqualify people from Roth IRA contributions.

Couples with a combined MAGI of less than $198,000 are eligible to contribute up to the maximum amount.

Couples that fall within the MAGI range of $198,000 to $208,000 are qualified for a lower contribution cap.

Couples with a MAGI of more than $208,000 are not permitted to make Roth IRA contributions.  The income restrictions for Roth IRA contributions are more stringent for married couples who file separately. 

A MAGI of $0 triggers qualifying for a lower contribution cap, which phases out at $10,000 or more.

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Source: marca.com

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