Making a Self-Directed IRA Contribution:
You can make a contribution to an IRA regardless of your age! In 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act. As a result, you can make regular self-directed IRA contributions (for 2020 and later) to Traditional or Roth IRAs regardless of age. You need “active income” from a W-2 job or self-employment income.
Spousal IRA contributions:
Filing a joint return? You may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a spousal IRA contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Contribution Limit in IRS Publication 590-A.
Can I contribute to a self-directed IRA if I participate in a retirement plan at work?
You can contribute to a traditional or Roth IRA even if you participate in another retirement plan through your employer or business. However, you may not be able to deduct all of your traditional self-directed IRA contributions if you or your spouse participates in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level. If you are self-employed, you may be eligible to contribute to a Simple IRA, a SEP IRA or a Solo 401k plan.
Self-Directed IRA Contribution Limits
Traditional & Roth IRA Contribution Limits for 2022
Under 50 $6,000
50 and over $7,000
SEP and Solo 401(k) Contribution Limits
The lesser of 25% of your income up to $61,000
(Check with your tax professional to determine the correct self-directed IRA contribution for you.)