How Much Should You Contribute to Your Roth IRA in 2023?

Contributing to a Roth IRA (individual retirement account) can set you up for a tax-free retirement. The more money you contribute to a Roth IRA, the more tax-free dollars you can potentially rack up during retirement. Although that can sound very appealing, you should know there is a cap on how much you can contribute to a Roth IRA every year.

Below, we’ll review the contribution limits for 2023 and how you can determine your contribution goals. It’s important to contribute as much as you can before your window of opportunity expires. As soon as your income jumps above the limits, you won’t be able to make direct contributions to a Roth IRA.

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Be clear about your goals

Roth IRAs are a great companion to a 401(k), 403(b), or other employer-sponsored retirement plan. The money you earn in a Roth IRA will be tax-free after you reach 59 1/2 and have met the requirements of the five-year rule. That means you could build a million-dollar Roth IRA and not have to worry about paying taxes during retirement.

Before you get started on your Roth IRA journey, you need to set goals and develop a contribution plan to maximize your retirement account. Here are a few questions you should consider to get you started:

What is your target retirement date?
How much do you need to save to live your dream life during retirement?
How much money have you saved for retirement?
Do you plan to contribute to other retirement accounts this year?
How is your current financial situation? Can you manage your ongoing expenses?
Do you expect your income to increase every year?
Do you expect to be in a higher tax bracket later?

These questions will help you determine if it makes sense to pay taxes on your retirement funds this year in exchange for tax-free income later. It will also help you create a retirement game plan to ensure you’re making the best moves now for your future self.

Check out the new contribution limits

Roth IRAs come with great tax benefits that are hard to ignore, but there are limits to how much you can contribute to the account every year. For 2023, you can contribute up to $6,500 if you are under 50 and the cap goes up to $7,500 if you are 50 and over.

You can contribute as much as you want to a Roth IRA up to the annual limit. However, you can’t contribute more than your earned income. For example, if you only earned $5,000 in 2023, your Roth IRA contribution can’t exceed $5,000.

Develop your 2023 Roth IRA contribution plan

You can make contributions to your 2023 IRA any time between Jan. 1, 2023, and April 15, 2024 (or tax filing deadline). You can start by contributing $25 a week and gradually increase your contributions during the year.

It’s important to review your financial situation and future goals now to determine how much you should contribute to the account. You should also review the Roth IRA income limits to ensure you qualify to make direct contributions to the account.

If you file taxes as a single person, your modified adjusted gross income must be under $138,000 to contribute the full amount to your 2023 Roth IRA. Once your income moves above the threshold, you’ll enter the phaseout range. This means your maximum contribution limit will be reduced and you won’t be able to make any direct contributions to a Roth IRA if your income goes above $153,000.

Take a look at the table below to determine if you can contribute the maximum or a reduced contribution amount to your Roth IRA.

2023 Tax Filing Status

Income Limit for a Full Roth IRA Contribution

Roth Contribution Phases Out Entirely for Income Above

Single and head of household



Married filing jointly



Data source: IRS.

Keep your future self in mind

Contributing money to your Roth IRA can ensure you have a pot of tax-free money waiting for you during retirement. The more money you contribute now, the better chances you have of building wealth in your account. You most likely won’t hit millionaire status in a Roth IRA in one year, but time and consistency can help you supersize your returns over time.

When making your Roth IRA plans, you should always think about your future self. The decisions you make today should position your future self to have the best retirement you can dream of.

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