Contributions to Traditional IRAs and Roth IRAs Are Aggregated
Contributions to IRAs and Roth IRAs are aggregated. For 2022, the total contributions you make to all of your Roth IRAs and Traditional IRAs cannot exceed the following amounts:
- $6,000 ($7,000 if you’re age 50 or older), or
- if less, your taxable compensation for the year
This means that for 2022 you cannot contribute the above limit to each type (i.e., traditional and Roth IRA); however, you can contribute some to each up to the above combined limit.
Traditional IRA Contributions May NOT be Fully Tax Deductible
While the IRS rules allow for contributions to both Solo 401k plans and IRAs, if you are also participating in a solo 401k plan, you can still make the traditional IRA contributions but they may not be tax deductible. See the chart listed on the following IRS link for these limits: https://www.irs.gov/retirement-plans/plan-participant-employee/2022-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work
2022 Traditional IRA Contributions Limits if You Also Contribute to Your Solo 401k
If you contribute to your full-time employer 401k or your solo 401k plan, you may not be able to fully deduct your Traditional IRA contributions. Use this table to determine if your modified AGI affects the amount of your Traditional IRA deduction.
For the above chart, if you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “single” filing status.
ROTH IRA CONTRIBUTIONS
Roth Solo 401k contributions are not impacted by your modified AGI. While you can also contribute to a Roth IRA and a solo 401k plan, not everybody qualifies for making a Roth IRA contribution if their modified AGI is over a certain limit. For these limits, please see the following chart: https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2022
Amount of Roth IRA Contributions That You Can Make for 2022
This table shows whether your contribution to a Roth IRA is impacted by the amount of your modified AGI as computed for Roth IRA purpose.