Can I Open And Contribute To A Roth IRA?

For tax year 2022, the eligibility to contribute to a Roth IRA is based on your modified adjusted gross income (MAGI) and tax filing status:

1. **Single Filers:**
   – Full Contribution: Eligible if MAGI is less than $129,000.
   – Reduced Contribution: Eligible for a reduced contribution if MAGI is between $129,000 and $144,000.
   – Ineligible: Ineligible to contribute if MAGI is $144,000 or more.

2. **Married Filing Jointly:**
   – Full Contribution: Eligible if MAGI is less than $204,000.
   – Reduced Contribution: Eligible for a reduced contribution if MAGI is between $204,000 and $214,000.
   – Ineligible: Ineligible to contribute if MAGI is $214,000 or more.

3. **Married Filing Separately (and lived with spouse during the year):**
   – Reduced Contribution: Eligible for a reduced contribution if MAGI is less than $10,000.
   – Ineligible: Ineligible to contribute if MAGI is $10,000 or more.

If your income exceeds the limits for direct Roth IRA contributions, you may still be able to contribute through a backdoor Roth IRA strategy. This involves making nondeductible contributions to a traditional IRA and then converting those contributions to a Roth IRA. Note that this strategy may have tax implications, especially if you have pre-tax funds in traditional IRAs.

It’s important to check with a tax advisor or financial professional to ensure compliance with IRS regulations and to determine the best retirement savings strategy based on your individual financial situation and goals. Additionally, income limits and contribution limits may change over time, so it’s essential to stay informed about current IRS guidelines.

Meet Your Pension Rep

Hi, I’m Dale and I help you build a secure retirement system.

Book Your Color of Money Analysis

Do you have enough money to retire? We can help you find out what you need to protect your family.

Grab Your Free Copy

Use this guide to start building a secure retirement plan to protect yourself and your family.