What is the maximum contribution limit to an individual retirement account (IRA) in 2023 for individuals under 50?

For the year 2023, the maximum contribution limit to an individual retirement account (IRA) for individuals under the age of 50 is set at $6,500. This amount reflects an increase from previous years, where the limit was often lower. The increase in the contribution limit is part of the IRS's adjustments based on inflation and aims to help individuals save more for retirement.

It’s important to note that individuals aged 50 and older are eligible for a catch-up contribution, which allows them to contribute an additional amount beyond the standard limit. In this context, the limit for those under 50 does not include this catch-up provision, maintaining the maximum contribution at the specified $6,500. Understanding these limits is crucial for tax planning and retirement savings strategies, allowing individuals to maximize their retirement contributions.