How much can I contribute per year? How much can I contribute per year?

How much can I contribute per year?

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If you are eligible to make a contribution, the annual limit for Traditional and Roth IRAs in 2022 is $6,000 if you are under the age of 50 or $7,000 if you are age 50 or older. However, contribution limits for SEP IRAs differ. For 2022, you can contribute up to $61,000, or roughly 25% of your adjusted gross income. It is recommended to speak with your tax advisor on your SEP IRA contribution limits.

 

Please note that annual IRA contribution limits apply to all of the IRAs you own, meaning you can have multiple IRAs, but your cumulative contributions cannot exceed the annual limits set by the IRS. 

 

For those with an Inherited IRA account, you may not make annual contributions per IRS guidelines

 

You may also visit the IRS website for more information.

 

Contribution Guidelines for Traditional and Roth IRAs

  • A contribution can only be made in USD per IRS rules
  • Contribution limits for 2022:
    • $6,000 if you are under 50 years old
    • $7,000 if you are 50 years or older

Roth IRA Contribution Guidelines for 2022

  • Filing "Single", you must have a modified adjusted gross income under $129,000 to make the maximum contribution to a Roth IRA
  • If you are married filing jointly, your MAGI must be less than $204,000 to make the maximum contribution to a Roth IRA
    • If eligible, both you and your spouse can open your own Roth IRAs and make the maximum contribution

SEP IRA Contribution Guidelines for 2022

Employer contribution limits made to an employee's SEP IRA cannot exceed the lesser of:

  • Approximately 25% of the employee's compensation (based on a formula, please confer with your tax professional)
  • $61,000 for 2022

For those with an Inherited IRA account, you may not make annual contributions per IRS guidelines