Individual Retirement Accounts (IRAs) have long been a cornerstone of retirement planning, offering individuals a tax-advantaged way to save for their golden years. Recently, the IRS has made noteworthy changes, increasing yearly contribution limits and providing new avenues for charitable giving through IRA assets.

In this post, we delve into these updates.

IRA Contribution Limits 2023

One of the most significant changes to IRAs is the increase in yearly contribution limits. As of 2023, the IRS has raised the annual contribution limits for both Traditional and Roth IRAs.

Here’s what you need to know:

  • Individuals can now contribute up to $6,500 (up from $6,000)
  • Individuals aged 50 and over have a $1,000 catch‑up contribution limit (no change from 2022)
  • Employees enrolled in 401(k), 403(b), 457 plans, and the Thrift Savings Plan can contribute $22,500 (up from $20,500).
  • Individuals with SIMPLE retirement accounts can contribute $15,500 (up from $14,000).

This increase in contribution limits presents a golden opportunity to bolster your retirement nest egg while maximizing the tax benefits IRAs offer.

Required Minimum Distribution Starting Ages 2023

You can’t hold money in your IRA forever. Once you reach a certain age, you’ll have to accept distributions. The distribution amount varies, but it typically grows larger as you age.

In 2020, the starting age for required minimum distributions (RMDs) was bumped from 70.5 to 72. Two years later, the Secure 2.0 Act raised the RMD starting age further, from 72 to 75.

Many people do not need their RMDs to enjoy a good quality of life, so a few more years to preserve tax-deferred assets can be very helpful.

*Note: this update applies to those born in 1960 or later.

Charitable Contributions through IRAs 2023

For the past 15 years, individuals aged 70½ or older have been able to make tax-free charitable donations directly from their IRAs. This provision, known as a Qualified Charitable Distribution (QCD), enables you to donate up to $100,000 annually from your IRA to qualified charities without including the distribution in your taxable income.

Secure 2.0 introduced a new option. Now, your QCD can fund a one-time $50,000 charitable gift annuity or a Charitable Remainder Trust (CRT).  That means that part of the money remains with the charity, and part comes back to you.

For example, if your RMD is $50,000 and you create a charitable gift annuity for the total amount, it won’t be taxed. The charity would then return some money through yearly payments,  which are taxed at your ordinary rate. A CRT isn’t really feasible with the $50,000 limit.

With the increase in RMD starting age, this option provides an additional opportunity to optimize your IRA for retirement planning and philanthropy. You can benefit from a tax-free charitable donation while also receiving a fixed income stream during your retirement years.

Integrating Contributions, Donations, and Secure 2.0

A strategic combination of increased IRA contributions, charitable donations through QCDs, and leveraging the benefits of the Secure 2.0 Act can yield substantial benefits.

  1. Maximizing Contributions: The new contribution limits offer an opportunity to contribute more to IRAs, enhancing retirement savings through tax-deferred growth.
  2. Balancing with Donations: Integrating charitable giving through QCDs aligns personal financial goals with philanthropic pursuits.
  3. Maximizing Benefits of Secure 2.0: Taking advantage of the RMD starting age increase and new charitable giving options lowers your tax burden.


The IRA changes brought by the IRS and the Secure 2.0 ACT may change how you approach retirement finances. The new higher contribution limits, increased RMD starting age, and expanded charitable giving options mean you can use your IRA to secure a comfortable future and support causes close to your heart.

Let the team at Kondler & Associates, CPAs, help you navigate the IRA updates of 2023. Our experienced professionals can guide you through complex tax laws and help maximize your IRA contributions and charitable donations, setting you up for a successful retirement.