Individual retirement account
Traditional IRA - Contributions to a traditional IRA are, depending on income, tax status and whether the taxpayer has a retirement plan sponsored by his or her employer. In 2023, a taxpayer can contribute $6,500 to a traditional or Roth IRA. If over age 50, the catch-up contribution limit is an additional $1,000. Either amount can be reduced if the taxable compensation (wages for example) are less than limit set for the IRA contribution.