HomeFinance NewsPersonal financeHurry! Deadline Approaching: Secure Your IRA Tax Break Before It's Too Late

Hurry! Deadline Approaching: Secure Your IRA Tax Break Before It’s Too Late


There’s still time to make a last minute 2023 IRA contribution and possibly claim a tax break. Here’s who qualifies


The federal tax filing deadline of April 15th is approaching, and individuals still have the opportunity to make tax-deductible contributions to individual retirement accounts (IRAs) for the 2023 tax year.

For 2023, the IRA contribution limit is $6,500, with an additional $1,000 catch-up contribution for individuals aged 50 and older.

However, not everyone is eligible for the tax deduction, and eligibility depends on three factors: 1.

Filing status: Single or married filing jointly 2.

Modified adjusted gross income: This is your gross income without certain deductions and adjustments.


Workplace retirement plan: Participation in an employer-sponsored retirement plan, such as a 401(k) or 403(b), can affect your deduction eligibility.

If you do not have a workplace retirement plan, you are generally eligible for a full IRA deduction, regardless of your income.

However, if you participate in a workplace plan, your deduction may be limited or even eliminated depending on your income and filing status.

The IRS provides an eligibility chart to help you determine if you qualify for an IRA deduction based on your filing status and income level.

While last-minute IRA contributions may offer tax savings, it is important to consider your individual financial goals and timeline before contributing.

Experts recommend weighing the potential tax benefits against potential future tax issues or unintended consequences.

Additionally, it is crucial to consider your current financial priorities, such as major expenses, before using retirement savings for short-term needs.

  • Overall sentiment: neutral
  • Positive

    “The IRA contribution limit was $6,500, plus an extra $1,000 for investors age 50 and older. That increased to $7,000 for 2024, with $1,000 more for catch-up contributions.”

    “You can still add money to your IRA for 2023 before the federal tax deadline, which is April 15 for most taxpayers.”


    “But not everyone qualifies for the tax break. It depends on your filing status, income and workplace retirement plan.”

    “The IRA deductibility rules can be “very confusing,” according to Mark Steber, chief tax information officer at Jackson Hewitt.”

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