January 5, 2022

Roth IRA Contributions

Jon Galane
3 min

Did you know that if you have not contributed to your Roth IRA for the 2021 tax year, you can still contribute up to Tax Day if you are eligible?

What is the Contribution Deadline?
The deadline to contribute to a Roth IRA for 2021 is the tax-filing deadline (April 15, 2022).

What are the Contribution Limits?
The maximum annual contribution in 2021 and 2022 is $6,000, or $7,000 if you are 50 or older.

The same combined contribution limit applies to all your Roth and Traditional IRAs. This means that the $6,000 (or $7,000 if you are 50 and above) is aggregate. You can contribute to one or both, but the total contribution must not exceed that limit.

Who is eligible to Contribute?
Keep in mind that there are income limits that restrict who can contribute. Those income limits are based on your modified adjusted gross income (MAGI). If your income falls into the Roth IRA phase-out range, your maximum contribution decreases and may be eliminated.

To figure out your modified adjusted gross income (MAGI), take your adjusted gross income (AGI) and add back in any of the following deductions or exclusions if you took them:

  • Deduction for traditional IRA contributions.
  • Deduction for student loan interest.
  • Deduction for domestic production activities (this deduction was eliminated in 2017).
  • Deduction for foreign housing.
  • Exclusion for foreign earned income/housing.
  • Exclusion for savings bond interest.
  • Exclusion for employer-provided adoption benefits.

Keep in mind that many of these deductions are rare, so it’s possible your AGI and MAGI can be identical.
Note: See IRS Publication 590-A, Worksheet 2-1, for instructions on figuring MAGI for Roth IRAs.

Mountain West IRA does not offer clients investment, tax, financial, or legal advice. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.

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