For the year 2022, individuals can contribute a maximum of $6,000 to their IRAs. Individuals aged 50 or above can make an additional catch-up contribution of $1,000. This limit applies to the total combined contributions made to all IRAs, regardless of whether they contribute to both traditional and Roth IRAs.
Contributions to IRAs must be made in the form of money, such as cash, check, or money order, meaning that property cannot be used for contributions.
Unless you receive taxable alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation, contributions cannot be made to your IRA during the years when you are not working.
Contributions to an IRA can be made at any point in the year or by the deadline for submitting your tax return, exclusive of extensions. In most cases, this implies that contributions for the year 2022 should be completed before April 17, 2023.
The amount of IRA contributions depends on the individual’s compensation.
Traditional IRA Contributions Can Be Made BUT Not Always Tax Deductible
The determination of whether an IRA contribution is partially, fully, or non-deductible is subject to phase-out limits when it comes to traditional IRAs.
- 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
Compensation is necessary to make annual contributions to a Roth IRA, as mentioned earlier. Furthermore, if your earned income exceeds a certain threshold or falls within a specific year, you might not be eligible for any Roth IRA contributions.
- 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)
Contribution Limits
Owners of retirement plans are allowed to annually contribute cash to their personal IRAs and/or workplace plans. The IRS has set limits on contributions that specify the highest amount of money that can be deposited into your account, taking into account both your own contributions and those made by your employer, if applicable.
The accounts featured on this page have maximum contribution limits specified by the IRS. Depending on your adjusted gross income (AGI), certain accounts may have additional deposit restrictions. We recommend consulting your tax advisor to verify your eligibility to make full contributions to your retirement plan.
| Account | 2022 | 2023 |
|---|---|---|
| Traditional IRA | ||
| Annual Contribution | $6,000 | $6,500 |
| Catch-Up Contribution (ages 50 and older) | $1,000 | $1,000 |
| Roth IRA | ||
| Annual Contribution | $6,000 | $6,500 |
| Catch-Up Contribution (ages 50 and older) | $1,000 | $1,000 |
| SEP IRA | ||
| Annual Contribution | The lesser of $61,000 or 25% of compensation | The lesser of $66,000 or 25% of compensation |
| SIMPLE IRA | ||
| Employee Salary Deferral | $14,000 | $15,5000 |
| Salary Deferral Catch-Up Contribution (ages 50 and older) | $3,000 | $3,500 |
| Employer Matching Contribution | Between 1-3% of employee’s compensation | Between 1-3% of employee’s compensation |
| Employer Non-Elective Contribution | 2% of employee’s compensation | 2% of employee’s compensation |
| 401(k)/Profit-Sharing Plan | ||
| Employee Salary Deferral | $20,500 | $22,500 |
| Salary Deferral Catch-Up Contribution (ages 50 and older) | $6,500 | $7,500 |
| Employer Profit-Sharing Contribution | Up to 25% of salary of self-employed earnings | Up to 25% of salary of self-employed earnings |
| Total Combined Contribution: Salary deferral plus profit-sharing match (under age 50) | $61,000 | $66,000 |
| Total Combined Contribution: Salary deferral plus-profit sharing match (age 50 or older) | $67,500 | $73,500 |
| Health Savings Account (HSA) | ||
| Individual HSA | $3,650 | $3,850 |
| Family HSA | $7,300 | $7,750 |
| Additional Catch-Up Provision (if over age 55) | $1,000 | $1,000 |
| Coverdell Education Savings Account (ESA) | ||
| Limit Per Beneficiary | $2,000 |
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