How Much May I Contribute to a Xxxxxxxxx Education Savings Account? The maximum contribution that can be made to all Xxxxxxxxx Education Savings Account that cover a particular beneficiary may not exceed $2,000. It is the joint responsibility of the contributor and the beneficiary to verify that excess contributions are not made on behalf of a particular beneficiary. Qualifying rollover contributions and transfers are not subject to these limitations. Note that special rules apply to contributions to Xxxxxxxxx Education Savings Accounts for purposes of gift and estate taxes. In addition, if your adjusted gross income (or combined income if you file a joint tax return) as modified below exceeds certain limits, you are not eligible to make a contribution to a Xxxxxxxxx Education Savings Account. For this purpose your adjusted gross income is increased by amounts excluded under Section 911 (certain exclusions applicable to U.S. citizens or residents living abroad), Section 931 (certain exclusions applicable to U.S. citizens or residents living in Guam, American Samoa, or the Northern Mariana Islands), and Section 933 (certain exclusions applicable to U.S. citizens and residents living in Puerto Rico) of the Code. The amount you may contribute to a Xxxxxxxxx Education Savings Account for a particular beneficiary is reduced proportionately for adjusted gross income (as modified above) within the applicable dollar range. The applicable dollar range is $95,000 to $110,000 for an individual, a married individual filing a separate tax return or a head of household and for a married individual filing a joint tax return this range is increased to $190,000 to $220,000. To determine the amount you may contribute to a Xxxxxxxxx Education Savings Account, you can refer to IRS Publication 970: MAGI for a Xxxxxxxxx ESA and Xxxxxxxxx ESA Contribution Limit.
How Much May I Contribute to a Traditional IRA? Year 2022 2023 IRA Contribution Limit $6,000 $6,500 As a result of the Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”) of 2001, the maximum dollar amount of annual contributions you may make to a Traditional IRA is $5,500 for tax years beginning in 2013 with the potential for Cost-of-Living Adjustment (COLA) increases in $500 increments. You may make annual contributions to a Traditional IRA in any amount up to 100% of your compensation for the year or the maximum contribution shown in the table above, whichever is less. The limitation is reduced by contributions you make to another Traditional IRA or to a Xxxx XXX, but is not reduced by contributions to a Xxxxxxxxx Education Savings Account for the benefit of another taxpayer. Qualifying rollover contributions and transfers are not subject to these limitations. All contributions must be in cash, check, Automated Clearing House (ACH) or wire. If you are age 50 or older by the end of the year, you may make additional “catch-up” contributions to an IRA. The “catch-up” contribution limit is $1,000 for tax years 2007 and beyond. In addition, if you are married and file a joint return, you may make contributions to your spouse’s Traditional IRA. However, the maximum amount contributed to both your own and to your spouse’s Traditional IRA may not exceed 100% of your combined compensation or the maximum contribution shown in the table above, whichever is less. The maximum amount that may be contributed to either your Traditional IRA or your spouse’s Traditional IRA is shown in the table above. Again, these dollar limits are reduced by any contributions you or your spouse make to a Xxxx XXX, but are not affected by contributions either of you make to a Xxxxxxxxx Education Savings Account for the benefit of another taxpayer. If you are the beneficiary of a Xxxxxxxxx Education Savings Account, certain additional limits may apply to you. Please contact your tax advisor for more information.
