Registered Tax Return Preparer RTRP Practice Exam

Question: 1 / 400

What is the maximum contribution limit for an individual IRA in 2023?

$5,500

$6,500

For the year 2023, the maximum contribution limit for an individual IRA is indeed $6,500. This amount reflects an increase from the previous limit, which allows individuals to save more for retirement in their IRA accounts. The Internal Revenue Service (IRS) periodically adjusts these limits to account for inflation and to encourage retirement savings.

Additionally, individuals aged 50 and over are allowed to make catch-up contributions, which brings their total limit to $7,000. This incentivizes older workers to enhance their retirement savings as they approach retirement age. Therefore, knowing the basic contribution limits, along with the opportunity for catch-up contributions, is essential for tax preparation and financial planning.

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$7,000

$8,000

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