Tax & Business
Alert
– February 2024
260
words
For eligible
taxpayers, the 2023 contribution limit has increased to $6,500, or $7,500 for
taxpayers aged 50 and up. If you’re a small business owner, you can establish
and contribute to a Simplified Employee Pension (SEP) plan up to the extended
due date of your return. The maximum SEP contribution you can make for 2023 is
$66,000.
What
determines eligibility? To make a deductible contribution to a traditional IRA,
you (and your spouse) must not be active participants in an employer-sponsored
retirement plan, unless your 2023 modified adjusted gross income falls within
these limits:
· For single
taxpayers covered by a workplace plan, the income phaseout range is $73,000 to
$83,000.
· For a married
couple filing jointly, where the spouse making IRA contributions is covered by
a workplace plan, the income phaseout range is $116,000 to $136,000. If the
spouse making the IRA contributions isn’t covered by a workplace plan but his
or her spouse is, the phaseout range is $218,000 to $228,000.
· For a married individual,
filing separately, with you or your spouse covered by a workplace plan, the
phaseout range is $0 to $10,000.
Contact
us if you want more information about this important topic. We can help you
save the maximum tax-advantaged amount for retirement.
© 2024