Advisory: Roth IRA participation
IRS data shows only 36% of Roth IRA savers max out contributions — a gap that rises with age cohort differences and missed tax‑advantaged growth opportunities analysis. If you’re not maxing out, it’s a simple lever to improve long‑term after‑tax returns.
The IRS figures come from tax year 2022, when the Roth contribution limit was $6,000 and the $1,000 catch‑up for savers 50+ raised their cap to $7,000 [finance.yahoo.com]. Taxpayers could make 2022 IRA contributions through April 18, 2023, the IRS filing‑deadline for that tax year [irs.gov]. Among contributors under 50, those aged 35–39 recorded the highest average annual Roth contribution at about $3,300, while averages peak near $4,800 for ages 65–69 [finance.yahoo.com]. The IRS age‑group breakdown shows 34% of contributors under 50 reached their age‑specific limit versus 38% of contributors 50 and older [indexbox.io]. The Investment Company Institute reported that only 15% of U.S. households made a contribution to a traditional or Roth IRA in tax year 2022, and 36% of households owning an IRA in mid‑2023 had contributed in 2022 [ici.org]. Contribution caps were lifted after 2022, with the Roth limit set at $7,000 for 2025 and increased again to $7,500 for 2026 (with larger catch‑up amounts for those 50+) under the IRS adjustments [fidelity.com].
