Top Considerations for Making a Roth Contribution in 2022

With the beginning of tax season upon us, many clients are considering whether to contribute to an IRA for 2022. Roth contributions are made with after-tax dollars. These accounts then grow tax-free until the client is ready to withdraw the funds during retirement (there are no lifetime minimum distribution requirements). The deadline for contributing to a Roth IRA for 2022 is April 18, 2023. For clients who were under age 50 in 2022, the maximum Roth contribution is $6,000 ($7,000 for clients who were at least 50 years old). There are no age limits for Roth IRA contributions--but you or your spouse must have earned income for the year of contribution. While you aren't required to notify the IRS that you made a Roth contribution, it's important for you and your tax consultant to keep track of these contributions. For more information on the rules governing Roth IRAs, visit Tax Facts Online. : Q 3660.