What is the maximum contribution limit for a Traditional IRA in 2023?

The maximum contribution limit for a Traditional IRA in 2023 is $6,500. This amount reflects an increase from previous years and is the standard limit set by the IRS for individuals under the age of 50. Those aged 50 and older may be eligible for a catch-up contribution that allows them to contribute an additional $1,000, bringing their total limit to $7,500. However, for individuals under 50, the contribution limit remains at $6,500, which aligns with the correct answer provided. This adjustment in contribution limits is part of the IRS's efforts to keep pace with inflation and encourage retirement savings.

Contributions to an IRA can offer tax advantages, which makes understanding these limits important for effective tax planning and maximizing retirement savings.