Roth IRA Contribution Limits for 2022 + Tax Benefits

Roth Contribution Limit

How much can you really contribute to your Roth IRA for the 2022 tax year?

If you’ve asked yourself this question, you’re not alone. We’re divulging the details on Roth IRA contribution limits for 2022 and any benefits you should take advantage of to reduce your income tax burden.

Table of Contents

  1. Roth IRA contribution limits for tax year 2022
  2. How to optimize your Roth IRA contributions ​
  3. Tax breaks for Roth IRA contributions
  4. Bottom line on Roth IRA contribution limits

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Roth IRA contribution limits for tax year 2022

According to the Internal Revenue Service (IRS), the contribution limits for Roth IRAs in 2022 are:

  • Up to $6,000 per year for people ages 49 and under
  • Up to $7,000 per year for people ages 50 and over

These are the same contribution limits as traditional IRAs. However, Roth IRA contribution limits have an additional stipulation. The higher your ordinary income, the less you can contribute.

Disclaimer

Filing statusIncome rangeContribution eligibility
Married couple filing jointly (or qualifying surviving spouse)Less than $204,000up to the limit
$204,001–$213,999a reduced amount
$214,000+zero
Married couple filing separately, living with your spouse at any time during the yearLess than $10,000a reduced amount
$10,000+zero
Single, head of household, or married filing separately and not living with spouse at any pointLess than $129,000up to the limit
$129,001–$143,999a reduced amount
$144,000+zero

What does a reduced contribution limit look like? The IRS gives you step-by-step instructions on how to calculate your new limit.

FYI

  • If you want to invest for retirement over your contribution thresholds, consider a long-term portfolio in the Public investing app. This feature helps you lock investments in for the long haul, plus you can invest in other capital assets like crypto.


How to optimize your Roth IRA contributions ​

Here are some things to know about how Roth IRAs work so you can decide how it best fits into your retirement planning:

  • You can have multiple types of retirement accounts, but you still can’t exceed the contribution limit for that tax year in your combined traditional and Roth IRA accounts.
  • You can count any contributions to a Roth or other IRA for the 2022 tax year up until the tax filing deadline on April 15, 2023.
  • You can automatically contribute your tax refund to your Roth IRA.
  • While you can’t practice tax-loss harvesting using Roth IRA capital losses because it’s a tax-advantaged retirement account, you can average down investments or reallocate your long-term investments with the investment advice of a financial advisor.
  • With Public Premium, you can gain access to advanced company insights and metrics to help you make better investing decisions. (You can also get expert insights from Morningstar experts while investing!)

Tax breaks for Roth IRA contributions

Filers cannot directly make tax deductions for Roth IRA contributions on a tax return (unlike traditional IRA contributions). But that doesn’t mean there aren’t tax breaks for taxpayers in a Roth IRA.

Since Roth IRAs consist of after-tax dollars, you don’t pay taxes upon withdrawal. This means no federal income tax down the line because you’ve already gotten it out of the way. (This is great for retirees who are leaving the workforce at a higher income tax bracket than when they were younger.)

Plus, you do not have to pay short-term capital gains tax or long-term capital gains tax when you withdraw money in a retirement savings account. (Naturally, the IRS puts a caveat on this: Just make sure you’re at least 59.5 years old and have been investing in your Roth IRA for at least five years to enjoy those tax benefits.)

Consult with a tax professional to fully understand the tax breaks for Roth IRA contributions.

Bottom line on Roth IRA contribution limits

With just a bit of calculating, you can get a firm number for how much you can contribute to a Roth IRA in 2022. Knowing this, you can lay out clear retirement investment strategies for the year.

Be an informed investor.

Make investment decisions in the light. Social investing app Public.com is an advocate for the informed investor.

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Frequently asked questions

What is the Roth IRA contribution limit for a single person?

The Roth IRA contribution limit for a single filer in 2022 is up to $7,000, depending on age and taxable income. View the table above for more details.

Can I contribute to an IRA for a spouse?

A working spouse can fund an IRA for a non-working spouse in addition to funding their own IRA.

Can I contribute to a Roth IRA at any time?

You can contribute to a Roth IRA at any point during the year until you reach the contribution limit.

What is the deadline to make a Roth IRA contribution for the 2022 tax year?

The deadline to make a Roth IRA contribution for the 2022 tax year is April 14, 2023, one day before the tax filing deadline.

How does my modified adjusted gross income (MAGI) affect my contribution limits?

If your MAGI exceeds the IRS limits for Roth IRA contributions, you may have a reduced contribution limit or be ineligible to contribute.

Should I keep a record of Roth IRA contributions?

It’s a good idea to keep a record of your Roth IRA contributions. If you need to withdraw your cost basis at any point, you can know how much you contributed before your investments gained value.

What can you invest in within a Roth IRA?

Roth IRA investors can invest in real estate investment trusts (REITs), exchange traded funds (ETFs), mutual funds, stocks, bonds, certificates of deposit (CDs), and even cryptocurrency depending on the brokerage.

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