Broker Check

You Can Still Make a 2023 IRA Contribution!

February 16, 2024
Did you know you can contribute to your traditional Individual Retirement Account (IRA) or Roth IRA for tax year 2023 until April 15, 2024? If you haven’t done so already, you can contribute $6,500 per person. If you’re over 50, you can add another $1,000 to that amount as a catch-up contribution! Keep in mind that at age 73, you must start required minimum distributions from a traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59 ½, may be subject to a 10% federal income tax penalty. A Roth IRA must meet a 5-year holding rule and occur after age 59 ½ for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals can also be taken under certain circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.