For the most part, the Internal Revenue Service (IRS) operates on a calendar-year basis. But here are some exceptions that, along with reducing your 2023 tax bill, could improve your retirement security.

If you’re not enrolled in a workplace retirement plan, you can deduct a contribution to an individual retirement account (IRA) of up to $6,500, or $7,500 if you were 50 or older, for 2023. You have until April 15, 2024, to make your 2023 contribution. Contributions to a traditional IRA will reduce your adjusted gross income on a dollar-for-dollar basis, which could also make you eligible for other tax breaks tied to your adjusted gross income (AGI).

Workers who have a company retirement plan but earn less than a certain amount may qualify to deduct all or part of their IRA contributions. For 2023, this deduction phases out for single taxpayers with AGI of between $73,000 and $83,000 and for married couples who file jointly with AGI of between $116,000 and $136,000.

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