Roth IRA

Forum|Forum|4 years ago
April 6, 2022
2 replies
6 views

I want to contribute to a new Roth IRA. For this year 2021 and last year 2020. I do not have an Ira yet and I am 51 years old. I can contribute $7500 for both of these years correct, cause I am behind. Can I contribute more for past years?

Now as a business owner, I have to pay myself w-2 wages to be able to contribute in the future and moving forward correct?

Bsch4477

Level 15

You can contribute up to $7,000 for 2021 if you do it before April 18, 2022.
You cannot contribute retroactively for 2020.
If you are self employed you do not have to pay yourself via a W-2. You can contribute to an IRA based on your net self employment income. You can also contribute to a SEP IRA up to 20% of your net self employment income if you wish in addition to your Roth IRA.

ErnieS0

Level 15

You can contribute to a 2021 IRA but it’s too late to contribute to 2020 as super Tax Champ @Bsch4477. The limit is $6,000 + $1,000 for someone 50 or older. The limit is the same for 2022.

IRS announces changes to retirement plans for 2022

A business owner can make additional contributions outside an IRA by setting up a Solo 401(k) plan and other types of plans.

See Retirement Plans for Self-Employed People

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