If you missed out on retirement contributions last year, don't sweat it. You still have time to contribute to a 2022 Roth IRA (individual retirement account) up until the tax-filing deadline, which is April 18, 2023. 

Having a healthy Roth IRA balance can pay off during retirement. All the money in your account will be 100% tax-free after you meet the requirements. 

The clock is ticking, so make sure you act fast if you want to beef up your 2022 Roth IRA before your window of opportunity closes. You won't be able to turn back the hands of time and make prior-year contributions later. 

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Your Roth IRA contribution game plan 

With the tax-filing deadline right around the corner, it's important to think about your Roth IRA goals and game plan. 

For 2022, you can stash away up to $6,000 in a Roth IRA. However, the contribution limits are sweeter if you are 50 or older. The IRS allows eligible retirement savers to tuck away up to $7,000 in a Roth IRA for 2022. 

Let's say you received a big bonus. You can use those funds to contribute to your Roth IRA. If you have extra money tucked away in a savings account, you can transfer some of those funds into a Roth IRA to boost your retirement savings. 

There's no pressure to contribute the maximum amount. Take a look at your financial situation and see what makes sense for you. If you don't get a chance to contribute to a 2022 Roth IRA before the deadline, you can work on your 2023 contribution game plan. Roth IRA savers can contribute up to $6,500 if they are under 50 and an extra $1,000 if they are 50 and over in 2023.   

Funding your Roth IRA can pay off 

You may have dragged your feet on retirement contributions in the past, but the benefits of a Roth IRA could quickly cause you to have a change of heart. Here are a few perks: 

The more money you contribute to your Roth IRA, the more options you will have during retirement. Let's say you accumulate a million dollars in your Roth IRA. After you've reached 59 1/2 and met the requirements of the five-year rule, you can withdraw every dime without worrying about taxes. 

If you think you'll have to pay higher taxes in the future, contributing to a Roth IRA can help you maximize your tax situation now. 

Check the Roth IRA qualifications 

Before you jump the gun, however, make sure you are qualified to make direct contributions to a Roth IRA.

The Roth IRA was designed to encourage more low-to-moderate income earners to save money for retirement. If you make too much money, you won't be able to make a direct contribution for the year.  

For 2022, you can contribute up to $6,000 to a Roth IRA if you are a single filer with modified adjusted gross income (MAGI) below $129,000. A married couple filing a joint return can max out their 2022 Roth IRA if their joint income is less than $204,000. After your income exceeds the above limits, you'll enter the phase-out range and your maximum contribution limit will be reduced. If your income surpasses the upper limit of the phase-out range, you won't be able to make any direct contributions to a Roth IRA. 

Check out the phase-out ranges below to determine if you can contribute the maximum amount to a Roth IRA. 

Roth IRA Income Phase-Out Ranges

FILING STATUS 

2022 INCOME RANGE 

Single or head of household 

$129,000 to $144,000

Married filing jointly 

$204,000 to $214,000

Data source: IRS. Chart by author.

Make the most of your 2022 Roth IRA 

There are only a few days left to contribute to a Roth IRA for 2022. Determine if you qualify and if it makes sense for you to contribute to a Roth IRA for 2022. The more money you add to your account, the more chances you can have to position yourself for financial freedom during retirement.