ROTH Contribution limits 2022

[Talk2me2]

I am married filing  jointly, AGI less than $204,000.  Both of us are retired & over 50 years old.  Shouldn't my ROTH contribution limit be $7,000?  Turbo Tax says since I earned $1,002, my contribution should be limited.

[MonikaK1]

For 2022, 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,000 ($7,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

Your individual Roth contributions are limited to your taxable compensation for the year, if that is less than the regular limit of $7,000 for over age 50.

See here for more information from the IRS on this topic.

[Opus 17]

Your contribution can't be more than your compensation from working.  This can include W-2 wages, schedule C self-employment income, or a few other things.  (For self-employment, the compensation limit is 92% of your net income, which is your net business income minus half your SE tax.)   If your spouse has compensation, you can use the spousal IRA rule to make contributions to your IRA by relying on your spouse's compensation.  But pensions, social security and IRA withdrawals do not count as compensation.