Quick Fact Sheet – Roth IRA Contributions
IRA and Tax Tables 2023
Roth IRA Eligibility
| Year |
|
|
|---|---|---|
| 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 |
|
|
|---|---|---|
| 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.
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:
| Year | Exempt from Tax | Estate-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:
| Year | Exempt from Tax | GST 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:
| Year | Annual 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.