February 2020
College and Tax Planning

Individual retirement accounts (IRAs) are among the most common ways to save for retirement. But if you own an IRA and you're not fully funding it each year, you could be missing an opportunity for your investments to grow tax-deferred. Two of the most frequently asked questions about IRAs are, "How much can I contribute?" and "What's the deadline for my annual contribution?" 

2019 and 2020 Contribution limits 

• Age 49 and under: $6,000 

• Age 50 and over: $7,000 

• To make a contribution, you have to be eligible, which means you must either: 

• Have taxable compensation, or 

• Have a spouse with taxable compensation and file a joint tax return. 

If you have more than one IRA (for example, a traditional and a Roth), your total combined contribution to all your accounts cannot exceed the above limits. 

In addition, if your income exceeds certain levels, the maximum you can contribute to a Roth IRA may be lower than the above amounts, or you may not be able to contribute to a Roth IRA at all. It's all based on your modified adjusted gross income, or MAGI. Below is an overview; if your MAGI falls in the "partial" range, your tax advisor can help determine your exact maximum. 

2020 Contribution deadline 

The deadline to make your yearly IRA contribution is April 15 of the following year. 

If you would still like to make a contribution for either 2019 or 2020, give us a call at the office and we can help you get that completed! 

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
401(K) ALLOCATION
GRAPHIC OF THE MONTH

To download the February 2020 Newsletter: CLICK HERE