April 18, 2023 is the deadline for filing your federal income tax return for tax year 2022 or requesting an extension. It is also the deadline to make contributions to your Individual Retirement Accounts (IRAs) and Roth IRAs.
Note: Normally, the deadline is April 15. However in 2023, the next business day, Monday, April 17, is Emancipation Day, which is a holiday recognized in Washington, D.C., where the IRS is headquartered. Also, April 17 is Patriot’s Day, a state holiday in both Maine and Massachusetts. Therefore, the federal tax deadline moves to Tuesday, April 18.
Traditional IRA: The IRS contribution limit to an IRA for tax year 2022 is 6,000 and for 2023 it is $6,500. However, anyone over age 50 who has a traditional IRA can make an additional “catch-up” contribution of up to $1,000, for a total of $7,000 (2022) and $7,500 (2023). Until tax year 2000, IRA contributions were restricted to those age 70½ and younger. This upper age limit restriction has been eliminated and age is no longer a contribution criteria.
Roth IRA: Starting in tax year 2000, all the IRA contribution limits and age limits apply to Roth IRAs. Thus, the contribution limit for an IRA is 6,000 (2022) and $6,500 (2023). Those age 50 and older may contribute an additional “catch up” of $1,000. There are no age restrictions; your young 5 year old can contribute to their Roth IRA, as long as the contribution amount does not exceed their income. The same rule applies if you are 80 and retired but have income from a second job. You can contribute to your Roth IRA, as long as your contribution does not exceed your income.