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What Is the Maximum Roth IRA Contribution Limit?

Contributing to a Roth IRA is a great way to save for retirement, but there are limits in place surrounding how much you can contribute each year.

Written by Jacqueline DeMarco / July 1, 2022

Quick Bites

  • The most someone can contribute in 2022 is $6,000 ($7,000 if over the age of 50).
  • There are income limits to how much you can contribute depending on your marital and tax filing status.
  • One of the main perks associated with saving for retirement through a Roth IRA is that you won’t have to pay any taxes on your earnings if you withdraw them at the appropriate time.

If you’re looking for ways to save for retirement, contributing to a Roth IRA may help you reach your goals by making it possible to invest your contributions while saving on taxes. Your contributions may be limited by your income level, as well as marital and tax filing status. Want to know more? We’ve got you covered.

Keep reading for more insight into how a Roth IRA works, how much you can contribute and a little about withdrawals.

Inside this article

  1. What's a Roth IRA?
  2. Income and contribution limits
  3. Timing
  4. Tax breaks
  5. Withdrawal rules

What's a Roth IRA?

A Roth IRA is an individual retirement account that comes with some unique tax advantages. When you make a qualified distribution (aka you withdraw the money when allowed), you won’t have to pay any taxes on the growth your contributions earned from being invested.

The money you contribute to a Roth IRA can be invested in a wide variety of investments such as stocks, bonds, mutual funds, and exchange-traded funds. You’re investing these funds, so the amount held in your Roth IRA can grow or decrease over time as the market ebbs and flows. But, very broadly speaking, investments tend to increase over time.

What Is a Roth IRA?

What Is a Roth IRA?

A Roth IRA can help you save on taxes during retirement—here’s how.

Find out more

As people get closer to retirement, they tend to switch their investments to less risky ones (like bonds) so that they are more protected from market volatility when they need to start withdrawing funds. Someone who is young and decades away from retirement may choose to invest in stocks, which can be riskier, but which can lead to a higher return.

You can open a Roth IRA through banks, credit unions, or brokerages.[1]

What are the income and contribution limits?

When it comes to how much you can contribute to a Roth IRA each year, there are income limits in place that affect your allowed contribution.

The income limits depend on your marital and tax filing status, according to Taylor Jessee, a Certified Financial Planner, Certified Public Accountant and investment advisor and director of financial planning at Taylor Hoffman Wealth Management.

The income limits are listed as a range. If you're under the bottom limits, then you’re eligible to make a full Roth contribution ($6,000 in 2022 plus another $1,000 if you’re over 50). If your income is over the top limit, then you can’t make a contribution at all. If your income falls in-between, then you can make a partial contribution, somewhere between $1 to $5,999 depending on what your income is.

These income limits exist due to the tax benefits associated with Roth IRAs.

“Money inside Roth IRAs will grow tax-free, and can be withdrawn tax-free once you’re over 59 ½ and you’ve had the Roth for at least five years,” Jessee says. “The government wants to provide these tax benefits to average workers—not the wealthy—to incentivize them to save.”

Jessee explained that “income” is considered to be your “Modified Adjusted Gross Income” which essentially accounts for all sources of income, not just your employment income (salary, wages, self-employment income, etc.). In other words, you need to include investment income (dividends, capital gains, interest), income from rental properties, pensions and even Social Security.[2]

The following chart outlines how much you can contribute to a Roth IRA based on your modified AGI.

If your filing status is...And your modified AGI is...Then you can contribute...
married filing jointly or qualifying widow(er)< $204,000up to the limit
married filing jointly or qualifying widow(er)> $204,000 but < $214,000a reduced amount
married filing jointly or qualifying widow(er)> $214,000zero
married filing separately and you lived with your spouse at any time during the year< $10,000a reduced amount
married filing separately and you lived with your spouse at any time during the year > $10,000zero
single, head of household, or married filing separately and you did not live with your spouse at any time during the year< $129,000up to the limit
single, head of household, or married filing separately and you did not live with your spouse at any time during the year> $129,000 but < $144,000a reduced amount
single, head of household, or married filing separately and you did not live with your spouse at any time during the year> $144,000zero

Timing

You can contribute to your Roth IRA (up to the contribution limit) however often you want. That being said, it’s best to arrange to make regular contributions if possible. You can usually set up automatic contributions that happen once a month or after you receive your paycheck. That way, saving for retirement is a part of your routine and budget.[4]

Tax breaks

One of the main perks associated with saving for retirement through a Roth IRA is that you won’t have to pay any taxes on your earnings if you withdraw them at the appropriate time. Major bonus right there.

The rules of withdrawal

Now let’s look at when you can make withdrawals without running into penalties so you can enjoy those tax benefits. With a Roth IRA, you don’t have to make withdrawals as soon as you retire. You can leave the funds in your account as long as you live.[5]

But you do have to wait to make withdrawals after the age of 59½ to avoid penalties. Oh, and no one can take money out before five years is up (aka the funds have to be held for at least five years after first contributing to a Roth IRA account).

What Are the Roth IRA Withdrawal Rules?

What Are the Roth IRA Withdrawal Rules?

Before you tap this tax-advantaged retirement account, make sure you know when a withdrawal can trigger taxes and penalties.

Find out more

There are some exceptions to these rules and you can withdraw funds early without facing the early withdrawal penalty. For example, if you are going to use the withdrawals to buy a home for the first time, pay for college expenses, or to cover birth or adoption expenses you can avoid the penalty.[6]

Article Sources
  1. “What Is a Roth IRA, and Is It Right for Me?” Experian. Aug. 18, 2021. https://www.experian.com/blogs/ask-experian/what-is-a-roth-ira/#:~:text=A%20Roth%20IRA%20is%20an,as%20you%20meet%20certain%20requirements
  2. “Retirement Topics - IRA Contribution Limits.” IRS. Nov. 27, 2021. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
  3. “Amount of Roth IRA Contributions That You Can Make for 2022.” IRS. Nov. 5, 2021. https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2022
  4. “Contributing to your IRA.” Fidelity. https://www.fidelity.com/building-savings/learn-about-iras/contributing-to-ira
  5. “Roth IRAs.” IRS. Nov. 5, 2021. https://www.irs.gov/retirement-plans/roth-iras
  6. “Roth IRA Withdrawal Rules.” Schwab. https://www.schwab.com/ira/roth-ira/withdrawal-rules

About the Author

Jacqueline DeMarco

Jacqueline DeMarco

Jacqueline has worked with more than two dozen financial brands, including LendingTree, Capital One, Bankrate, Student Loan Hero, and Northwestern Mutual, providing thoughtful content to give readers insight into complex topics that they likely didn’t learn in school.

Full bio

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