Roth IRAs

Roth IRA Contribution Limits for 2022

The Roth IRA contribution won’t increase for 2022, but the income threshold for using these accounts will go up.

All-in-all, Roth IRAs offer a great way to save for retirement for certain people. But 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.

Roth IRAs vs. Traditional IRAs

Unlike contributions to a traditional IRA, which may be tax-deductible, a Roth IRA has no up-front tax break. Money goes into the Roth after it has already been taxed. But when you start pulling money out in retirement, your withdrawals will be tax-free.

Also, Roths—unlike traditional IRAs—are not subject to required minimum distributions (RMDs) after age 72.

Roths are also more flexible than traditional, deductible IRAs. You can withdraw contributions to a Roth account anytime, tax- and penalty-free. If you want to withdraw earnings tax-free, though, you must be at least age 59 1/2, and you must have owned the Roth for at least five years. The clock on the five-year holding period starts ticking on January 1 of the year you open the account.

You can open a Roth IRA through a bank, brokerage, mutual fund or insurance company, and you can invest your retirement money in stocks, bonds, mutual funds, exchange-traded funds and other approved investments. You have until the federal tax filing deadline to make your Roth IRA contribution for the prior year.

Is a Roth IRA Right for You?

There isn't a minimum age limit to open a Roth IRA, and you can contribute to another person's Roth account as a gift—perfect for parents looking to kick-start a child's retirement savings. Two caveats: Recipients must have earned income, and you can only contribute an amount up to that person's annual earnings or $6,000, whichever is less.

Financial experts generally recommend Roths for people who anticipate a greater tax burden in retirement, whether because of rising income or higher tax rates in general. By paying the taxes on those contributions while your income or tax rate is lower, you’ll reap the benefit of tax-free money later when it counts more. This is especially true for someone who plans to retire in 2026 or later. Unless Congress intervenes, current income tax rates are supposed to sunset at the end of 2025 and revert to 2017 income tax rates beginning January 1, 2026. If that happens, here’s a sample of what you can expect:  The current 12% rate becomes 15%, the 22% rate rises to 25%, and the 24% rate jumps to 28%.

Roths can also provide valuable tax diversification in retirement and can be a great way to balance other sources of income, such as withdrawals from a 401(k) or Roth IRA and Social Security payments. For instance, those tax-free Roth withdrawals in retirement won’t contribute to your taxable income, which is used to determine how much you pay for Medicare, including any surcharges (also known as income-related monthly adjustment amounts or IRMAAs). 

Finally, note that if you invest in both a Roth IRA and a traditional IRA, the total amount of money you contribute to both accounts can't exceed the annual limit. If you do exceed it, the IRS might hit you with a 6% excessive-contribution penalty.

Roth IRA Savings Tips

To make the most of saving for retirement in your Roth IRA:

  • Max out your contributions. For each year that you're able, aim to hit the $6,000 limit.
  • Once you turn 50, add another $1,000 to that limit annually. You can add funds to your Roth for as long as you have earnings from work.
  • Avoid withdrawing funds you contributed to your account, even though you can do so without penalties or taxes. Letting that money grow in the account over many years means a bigger nest egg in retirement.

Most Popular

8 Money Tips for Seniors Suffering from Inflation

8 Money Tips for Seniors Suffering from Inflation

This year has been an especially tough one for seniors on fixed incomes. To stay on track, try these eight financial survival tips.
June 26, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
An Easy Way to Find How Much You Will Spend in Retirement
retirement planning

An Easy Way to Find How Much You Will Spend in Retirement

One simple math equation can help you determine where to start building your retirement income plan, and whether your money should last.
June 27, 2022


Tax Changes and Key Amounts for the 2022 Tax Year
tax law

Tax Changes and Key Amounts for the 2022 Tax Year

Americans are facing a long list of tax changes for the 2022 tax year. Smart taxpayers will start planning for them now.
June 10, 2022
IRAs and 401(k)s Are Nice Now, But Will RMDs Hamper Your Retirement?
Roth IRAs

IRAs and 401(k)s Are Nice Now, But Will RMDs Hamper Your Retirement?

We’ve got four years left until tax rates are set to revert to higher levels, so workers may want to shift their thinking away from 401(k)s and tradit…
June 2, 2022
Should You Consider a Roth Conversion While the Market is Down?
Roth IRA Conversions

Should You Consider a Roth Conversion While the Market is Down?

Investors who are hurting right now as the stock market takes a hit may want to console themselves with a possible tax bargain created by a Roth conve…
May 16, 2022
7 Money-Smart Ways to Spend Your Tax Refund
Tax Breaks

7 Money-Smart Ways to Spend Your Tax Refund

Nearly 60% of taxpayers expect a refund this year, and many will receive a larger amount.
April 22, 2022