What are the contribution limits for IRAs?

The contribution limits for Individual Retirement Accounts, commonly known as IRAs, can vary based on the type of IRA and the contributor's age. As of 2023, for traditional and Roth IRAs, the annual contribution limit is set at six thousand dollars for individuals under the age of fifty. For those aged fifty and above, there is a catch-up contribution provision that allows an additional one thousand dollars, bringing the total limit to seven thousand dollars. It is important to note that these limits apply to the combined contributions across all traditional and Roth IRAs an individual may have. Additionally, eligibility to contribute to a Roth IRA may be phased out depending on the individual's modified adjusted gross income. For simplified employee pensions, or SEP IRAs, the contribution limits are significantly higher. Employers can contribute up to twenty-five percent of an employee's compensation, with a maximum contribution limit of sixty-one thousand dollars for 2022, and this amount may be subject to adjustment for inflation. For the most updated and specific information, it is advisable for individuals to check the current web page dedicated to IRA Resources Inc, as they may provide additional insights and guidelines regarding contribution limits.