The IRA contribution limit for 2022 is $6,000 plus $1,000 catch-up for those age 50 or older. This is the maximum that may be contributed to all of your IRAs combined, regardless if you contribute to both a traditional IRAs and a Roth IRA.
Annual contributions to IRAs must be made in money (cash, check, or money order); therefore, property cannot be contributed.
In year’s that you don’t work, contributions can’t be made to your IRA unless you receive taxable alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation.
IRA contributions can be made for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2022 must be made by April 17, 2023
IRA contributions are based on compensation. Here is a sample chart published by the IRS of what is and what is not deemed compensation for making IRA contributions.
Traditional IRA Contributions Can Be Made BUT Not Always Tax Deductible
For traditional IRAs, phase-out limits apply in determining if the IRA contribution is partially, fully or non-deductible.
- For 2022, Traditional IRA deductibility phase-out for married joint filing taxpayers participating in employer plans is $109,000–$129,000.
- For 2022, Traditional IRA deductibility phase-out for married with spouse an active participant in employer plan is $204,000–$214,000)
Roth IRA Income Limits Apply
As stated above, compensation is required in order to make annual Roth IRA contributions. Also, you may not be able to make any Roth IRA contributions if your earned income is too high or the year.
- For 2022, Roth IRA income limitation for determining maximum contribution for married joint filers: the phase-out range is $204,000–$214,000)
- For 2022, Roth IRA income limitation for determining maximum contribution for single filers and heads-of-households: the phase-out range is 129,000–$144,000)