Each year the IRS increases the income levels whereby your contributions to a traditional IRA are tax deductible. As you do your taxes for 2023 or as you consider making a contribution to your IRA account for 2023, below are the IRA deduction and income limits for 2023. You can contribute a maximum of $6,500 to an IRA in 2023 ($7,500 if you are 50 or over). You have until April 15, 2024 to make your IRA contribution for the 2023 tax year.
Effect of Modified AGI on deduction of your traditional IRA if you are covered by a retirement plan at work:
If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your traditional IRA deduction.
| If your filing status is | AND your modified adjusted gross income (modified AGI) is.. | THEN you can take… |
| single or head of household | $73,000 or less | a full deduction. |
| more than $73,000 but less than $83,000 | a partial deduction. | |
| $83,000 or more | no deduction. | |
| married filing jointly or qualifying widow(er) | less than or equal to $116,000 | a full deduction. |
| more than $116,000 but less than $136,000 | a partial deduction. | |
| $136,000 or more | no deduction. | |
| married filing separately* | ||
| less than $10,000 | a partial deduction. | |
| $10,000 or more | no deduction. |
* If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status).
Effect of Modified AGI on deduction of your traditional IRA if you are NOT covered by a retirement plan at work:
If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your traditional IRA deduction.
| If your filing status is | And your modified adjusted gross income (modified AGI) is… | THEN you can take |
| single, head of household, or qualifying widow(er) | any amount | a full deduction. |
| married filing jointly or separately with a spouse who is not covered by a plan at work | any amount | a full deduction. |
| married filing jointly with a spouse who is covered by a plan at work | $218,000 or less | a full deduction |
| more than $218,000 but less than $228,000 | a partial deduction | |
| $228,000 or more | no deduction. | |
| married filing separately with a spouse who is covered by a plan at work | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. |
Source: IRS
