IRA and Tax Tables 2023 | Ed Slott and Company, LLC

IRA and Tax Tables 2023

Roth IRA Contributions Quick Fact Sheet

Quick Fact Sheet – Roth IRA Contributions

IRA Contribution Levels

YearUnder age 50Age 50+
2023$6,500$7,500

Roth IRA Eligibility

Year Married/Joint Single or head of Household
2021 198,000 - 208,000 125,000 - 140,000
2022 204,000 - 214,000 129,000 - 144,000
2023 218,000 - 228,000 138,000 - 153,000

If filing married-separate, the phase-out range is $0 - $10,000.

Traditional IRA Deductions

This chart is only for those who are covered by a company retirement plan.

Year Married/Joint Single or head of Household
2021 105,000 - 125,000 66,000 - 76,000
2022 109,000 - 129,000 68,000 - 78,000
2023 116,000 - 136,000 73,000 - 83,000

If not covered by a company plan but the spouse is, the phase-out range for 2022 is $204,000 - $214,000 and for 2023 is $218,000 - $228,000. If filing married-separate, the phase-out range is $0 - $10,000.

Roth IRA Conversion Eligibility

YearEligibility
2023Anyone Can

SEP IRA Contribution Levels

Here's what can be contributed to a SEP IRA:

Year Maximum Contribution
2023 Up to 25% of compensation of up to $330,000, but no more than $66,000. Catch-up contributions do not apply.

Federal Tax Brackets

Taxable Income Brackets for 2023 Ordinary Income Tax Rates

Marginal Tax Rate

Married Filing Joint

Single

10%

$0 – $22,000

$0 – $11,000

12%

$22,001 – $89,450

$11,001 – $44,725

22%

$89,451 –$190,750

$44,726 – $95,375

24%

$190,751 – $364,200

$$95,376 – $182,100

32%

$364,201 – $462,500

$182,101 – $231,250

35%

$462,501 – $693,750

$231,251 – $578,125

37%*

Over $693,750

Over $578,125

Federal Estate Tax Levels

At death, a surviving spouse's estate will owe estate taxes on the net value that exceeds the annual exemption:


YearExempt from TaxEstate-Tax Rate
2023

$12,920,000 per person with portability

Top rate of 40%

Generation-Skipping Transfer (GST) Tax

Tax on assets transferred to non-spouse heirs at death:


YearExempt from TaxGST Tax Rate
2023

$12,920,000 per person (no portability)

40%

Annual Gift Tax Exclusion

You may give the following amount to an individual, free of gift tax:


YearAnnual Exclusion
2023$17,000

IRA Minimum Distribution Tables

When owners of a Traditional IRA reach age 73, they are required to take annual minimum distributions. The amount changes each year. Simply divide your IRA's value at the end of the prior year by the distribution factor listed next to your age in the following IRS charts:



Uniform Lifetime Table

This table is the life expectancy table to be used by all IRA owners to calculate lifetime distributions unless your beneficiary is your spouse who is more than 10 years younger than you. In that case, you would not use this table, you would use the actual joint life expectancy of you and your spouse based on the regular Joint Life Expectancy Table. The Uniform Lifetime Table is never used by IRA beneficiaries to compute required distributions on their inherited IRAs.

Joint Life Expectancy Table

This table is used only for lifetime distributions and only when the spousal exception applies (when the spouse is the sole beneficiary for the entire year and is more than 10 years younger than the IRA owner). Beneficiaries never use this table.


Single Life Expectancy Table

Beneficiaries use this Single Life Expectancy Table based on their age in the year after the IRA owner's death. That factor is reduced by one for each succeeding distribution year. Spouse beneficiaries who do not elect to roll the IRA over or treat it as their own also use the single life table, but they can look up their age each year.
 

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