How much can I contribute to my IRA?
For 2021, the maximum contribution is $6,000. If you are 50 or older in 2021, the limit is $7,000.
For 2022, the maximum contribution remains at $6,000. If you are 50 or older in 2022, the limit remains at $7,000.
The above contribution limits are for a traditional IRA. Learn about what is known as a Roth IRA.
IRA deduction limits on your tax return.
Your IRA contribution may not be entirely deductible on your income tax return. Here are the rules:
Your entire IRA contribution is deductible if you and your spouse; or if you are single; or claim head of household and were not covered by a retirement plan at your work.
Your deduction is reduced if you and your spouse are both covered by a retirement plan at work and you make more than $105,000 on a joint tax return in 2021 or more than $109,000 in 2022. You receive no deduction when you make $125,000 in 2021 or make $129,000 in 2022.
Your deduction is reduced if one spouse is covered by a retirement plan and the other spouse is not covered by a retirement plan when your joint return income exceeds $198,000 in 2021 and $204,000 in 2022. You receive no deduction when your joint income is $208,000 in 2021 or $214,000 in 2022.
If you are single or claim head of the household and are covered by a retirement plan at work, your IRA deduction is reduced when your income is $66,000 in 2021 and $68,000 in 2022. You receive no deduction when your income is $76,000 in 2021 and $78,000 in 2022.