Annual Contribution Limits

Each type of retirement account has a maximum you can add to it each year

Annual Contribution Limits

Here are the maximum amounts you can contribute each year to a Traditional, Roth, and SEP IRA. These limits can change from one year to the next, so both 2022 and 2023 amounts are listed below.

Limit$6,000 ($6,500 for 2023)$61,000 or 25% of income ($66,000 for 2023)$20,500 ($22,500 for 2023)
Limit if over 50$7,000 ($7,500 for 2023)$61,000 or 25% of income ($66,000 for 2023)$26,000 ($30,000 for 2023)

It’s a great practice to try your best to hit these maximum contributions to your retirement accounts. The earlier you start putting money into the account, the longer it has to grow. But it’s never too late to save for retirement. In fact, the IRS increases the annual contribution limits for some IRAs for people over 50 to help you make sure you have enough saved when you stop working.

A few other notes:

  • In a Traditional IRA, you don’t pay taxes on contributions until you are 72 years old, at which time you are required to take distributions.
  • In a Roth IRA, there are income limits to contribute: for single filers, you can’t contribute if your income is over $144,000 ($153,000 in 2023), and for married couples filing jointly, you can’t contribute if your income is over $214,000 ($228,000 in 2023).
  • If you contribute to a SEP IRA, you can also contribute to a Traditional or Roth IRA. Saving in more than one retirement account, especially if you’re able to maximize your contributions in each, can help you save even more for retirement.