IRA

Hello,

 

Good question! Assuming you otherwise meet the requirements to make a deductible IRA contribution, for 2023, the IRA contribution limits are:

 

 $6,500 for those under age 50, and $7,500 for those age 50 or older.

 

Your contributions to the IRA will not be considered when calculating your annualized income for Form 2210

Hi,

Thanks for your question. First, I want to make sure I have the facts straight!  You were laid off in 2022, and had unemployment income in 2023.  You would like to contribute to an IRA for 2023. To contribute to an IRA, you must have what the IRS called "earned income." Unemployment income is not earned income per the IRS.  Earned income does include things like W-2 wages and net earnings from self-employment.

Assuming you will have earned income in 2023, the IRS looks at the whole year (and doesn't attempt to match your earnings and IRA contributions by quarter).

For the 2023 tax year, you can contribute up to $6500 to ($7500 if you are over 65) to your traditional IRA (more info here). Whether or not you can deduct the IRA contribution depends on your modified AGI and whether or not you have a retirement plan at your work--assuming you are working--(those limits are covered here).

Hope this helps!

 

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Best,

Karen