How much can Leah contribute to her IRA for the year 2023?

Prepare for the Federal Tax Law Exam. Use flashcards and multiple choice questions with detailed hints and explanations. Get exam-ready!

For the year 2023, the standard contribution limit for individual retirement accounts (IRAs) is $6,500 for individuals under the age of 50. However, individuals aged 50 and above have the opportunity to make an additional catch-up contribution, which is an extra $1,000. This means that those eligible can contribute a total of $7,500 to their IRA.

Given this information, if Leah is 50 years old or older, she can contribute the higher amount of $7,500 to her IRA for the year 2023. This option takes into account both the standard limit and the additional catch-up contribution allowed for those who are older, making it the correct answer.

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