Here's How to Max Out Your Roth IRA for 2021 and 2022 on Jan. 1
The tax-exempt Roth IRA is one of the most effective retirement planning vehicles, and the sooner you take full advantage of its benefits, the better off you'll be in the long run. The only real downside to the Roth IRA is that it comes with contribution limits (you can only contribute so much in any one year) and income limits (you have to make under a certain amount to be able to contribute directly).
Here, we'll go over how to max out your Roth IRA for both 2021 and 2022, even if you start after the turn of the new year.
Before we start, let's assume you fall within the income limits to directly contribute to a Roth IRA in 2021; in other words, you earn under $125,000 as a single individual or $198,000 as a married couple. If this fits your profile, you'll be able to directly stash money into a Roth IRA for the 2021 tax year, up to a contribution limit of $6,000 if you're under 50 and $7,000 if you're 50 or over.
Source Fool.com
