What is the maximum amount I can contribute to an IRA each year?
The answer is the same for Traditional and Roth IRAs:
- If you are under 50 years of age at the end of 2022: The maximum contribution that you can make to a Traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2022. This limit can be split between a Traditional and a Roth IRA but the combined limit is $6,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a Traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI).
- If you are 50 years of age or older before the end of 2022: Your maximum contribution to a Traditional or Roth IRA is the smaller of $7,000 or the amount of your taxable compensation for 2022. This limit can be split between a Traditional and a Roth IRA but the combined limit is $7,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a Traditional IRA may be reduced depending upon your modified AGI.
If you are self-employed and qualify for a SEP IRA, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $61,000.
Want to learn more about IRAs? Watch this video from our team: IRAs Explained (Roth, Traditional, and SEP)
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