If you have an IRA, don’t forget that you have until the tax filing deadline (Tuesday, April 18, 2023, this year) to fund a traditional IRA. Making contributions to these types of retirement accounts can reduce your 2022 tax liability and contributions grow tax deferred.
To qualify for the full deduction in tax year 2022, you cannot be eligible to participate in a company retirement plan or, if you are eligible, have an adjusted gross income of $68,000 or less ($109,000 for Married Filing Jointly Taxpayers). If one spouse is not eligible for a company retirement plan but the other is, the IRA contribution is fully tax deductible if the gross income of both spouses combined does not exceed $204,000.
The maximum IRA contribution amounts for 2022 are $6,000 for those under the age of 50 and $7,000 for those 50 or older.
