This article from Kiplinger highlights contribution limits for 2022 and 2023. Let me know if you have any questions. I will be glad to discuss the impact this has on your scenario when we meet to review your 2022 tax returns.
Source: Kiplinger | Repost RE Donica & Associates 1/19/2023 –
All-in-all, Roth IRAs offer a great way to save for retirement for certain people. But a pause on increasing Roth IRA contribution limits means retirement savers won’t be able to contribute more to these accounts in 2022 than they did in 2021.
There is one bit of good news – the IRS has increased the income limits for contributing to a Roth IRA for 2022.
2022 Roth IRA Contribution Limits and Income Limits
The maximum amount you can contribute to a Roth IRA for 2022 is $6,000 if you’re younger than age 50. If you’re age 50 and older, you can add an extra $1,000 per year in “catch-up” contributions, bringing the total contribution to $7,000. This remains unchanged from 2019.
The actual amount that you are allowed to contribute to a Roth IRA is based on your income. To be eligible to contribute the maximum amount in 2022, your modified adjusted gross income must be less than $129,000 if single or $204,000 if married and filing jointly. Contributions begin phasing out above those amounts, and you can’t put any money into a Roth IRA once your income reaches $144,000 if a single filer or $214,000 if married and filing jointly.