There’s Still Time to Fund Your IRA

 January 17, 2020

There is still time to make a contribution to a traditional IRA or Roth IRA for the 2019 tax year. The annual contribution limit is $6,000 or $7,000 if you are age 50 or over. 

Prior to making a contribution, if you (or your spouse) are an active participant in an employer’s qualified retirement plan (a 401(k), for example), you will need to make sure your modified adjusted gross income (MAGI) does not exceed certain thresholds. There are also income limits to qualify to make Roth IRA contributions. 

Maximum 2019 IRA Contribution amounts: $6,000 or $7,000 (with age 50+ catch-up provision)

 

2019 IRA Income (MAGI) Limits

 

Traditional IRA
Allowed contribution range
Roth IRA

Allowed contributionrange

Filing Status Full Contribution Phaseout Complete Full Contribution Phaseout Complete
Single $64,000 $74,000 $122,000 $137,000
Married $103,000 (both participating)

$193,000 (nonparticpating spouse)

$123,000 (both participating)

$203,000 (non particpating spouse)

$193,000 $203,000

 

 Bringing Clarity: Married traditional IRA limits depend on whether either you, your spouse or both of you participate in a qualified employer-provided retirement plan. If married filing separate and either spouse participates in an employer’s qualified plan, the income phaseout to contribute is $0-10,000.

If your income is too high to take advantage of these IRAs you can always make a non-deductible contribution to an IRA. While the contributions are not tax-deferred, the earnings are not taxed until they are withdrawn.

 

Contact Your CPA to Discuss Your Tax Situation.

Contact Your CPA to Discuss Your Tax Situation.

Bringing clarity to your financial world.™

Bringing clarity to your financial world.™