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IRA Rules at a Glance: Contribution Limits, Income Limits and Rollover Options

The article from MSN Money outlines key rules regarding Individual Retirement Accounts (IRAs) as of 2023. It discusses contribution limits, income limits for tax deductions, and rollover options. For 2023, the contribution limit for both Traditional and Roth IRAs is set at $6,500, with an additional $1,000 catch-up contribution allowed for individuals aged 50 and above. Traditional IRA contributions might be tax-deductible depending on income, participation in an employer-sponsored plan, and filing status. Roth IRA contributions are not tax-deductible, but qualified withdrawals in retirement are tax-free. Income limits apply for Roth IRA contributions, phasing out at higher income levels. The article also covers rollover rules, explaining that funds can be moved from one IRA to another or from a 401(k) to an IRA without tax penalties if done correctly, with a 60-day window to complete the rollover. Additionally, it touches on the importance of understanding the rules to avoid penalties, such as the 10% early withdrawal penalty for distributions before age 59½, and provides guidance on required minimum distributions (RMDs) for Traditional IRAs starting at age 73.

Read the Full Kiplinger Article at:
[ https://www.msn.com/en-us/money/other/ira-rules-at-a-glance-contribution-limits-income-limits-and-rollover-options/ar-AA1BEz9N ]