Retirement savers can celebrate another victory in 2022: Thanks to the latest income ranges released by the IRS, more people can stash money away in a Roth IRA (individual retirement account). If you've missed out on Roth IRA contributions before, this may be your time to shine on the retirement scene. 

Below, we break down the 2022 income ranges for Roth IRAs and help you determine your eligibility to make direct contributions. 

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A retirement treasure you don't want to miss

The Roth IRA is a big deal for investors who want to accumulate tax-free wealth in retirement. Even tech titan Peter Thiel was able to capitalize on this account to build a $5 billion tax-free nest egg.

Established in 1997, the Roth IRA allows you to contribute after-tax dollars, grow your wealth tax-free, and withdraw it all 100% tax-free in retirement -- as long as you stick to the rules. Basically, if your account balance reaches $1 million, you can walk away with every penny in your Roth IRA after you've turned 59 1/2 and checked the box on the five-year rule

Limitations do apply 

As good as the Roth IRA sounds, there are limits that make this account harder for some people to use. First, you must have earned income to contribute to a Roth IRA. If you're not making money, you give up your rights to fund the account. 

Next, you can only contribute a maximum of $6,000 for 2022 (if you're under age 50). You can add an additional $1,000 if you are 50 or over. If you earn less than the maximum contribution for the year, your contribution is limited to the amount of money you earned. 

Not only are there minimum income requirements, but there's also an income cap that can limit your Roth IRA goals. You have to fall within a certain income range to make direct contributions to a Roth IRA. We'll break down the 2022 limits next so you'll know if you qualify.

A bigger move in 2022

The Roth IRA income ranges have increased from 2021 to 2022. If your income stopped you from making contributions to a Roth IRA in the past, you may have a better chance to leverage this tax-advantaged gem now. 

Single filers can contribute the maximum amount to a Roth IRA if their modified adjusted gross income (MAGI) is less than $129,000, up from $125,000 in 2021. For married couples, the MAGI should be under $204,000, an increase of $6,000 from the previous year. Although calculating your MAGI may sound intimidating, it's just your adjusted gross income with a few tweaks added in.

When your income exceeds the limits for your tax filing status, you won't be able to contribute the maximum amount to a Roth IRA. Your maximum contribution limit decreases after you enter the phaseout ranges listed below.

Filing Status 

2022 Income Range 

2021 Income Range 

Single or head of household 

$129,000 to $144,000

$125,000 to $140,000

Married filing jointly 

$204,000 to $214,000

$198,000 to $208,000

Data source: IRS.

When your income soars beyond the phaseout ranges, you won't be eligible to make a direct contribution to a Roth IRA. However, you won't be banned from the Roth IRA club for good. You could explore a backdoor Roth IRA and determine if that's an option for you.

Enjoy the Roth IRA while you can 

The Roth IRA is a retirement treat that can set you up for years of tax-free income during retirement. But if you wait too long to contribute, you limit its growth potential.

Do your research and determine which retirement accounts are right for you. Since the Roth IRA has income caps, you want to get a head start on contributions if you qualify now. The more money you sock away in a Roth IRA now, the better chance you have of reaching the $1 million Roth IRA milestone.