Contribution limits are established by the IRS and are subject to change. Historically, when the IRS has changed the maximum allowable contribution limits they have done so prior to the next tax year so taxpayers can prepare and update their contribution planning. For 2020 the IRS has not made any changes to the contribution limits for Traditional and Roth IRA accounts.
For 2019 and 2020, the contributions limits are:
• $6,000 ($7,000 if you’re age 50 or older), or
• your taxable compensation for the year, if your compensation was less than $6,000.
A few things to keep in mind when determining what type of IRA to contribute to:
• Contribution limits do not apply when you roll over an IRA account to another provider.
• If contributing to a Roth IRA your contribution limit may be adjusted based on your income.
– Please visit when calculating your 2020 contribution: Amount of Roth IRA Contributions That You Can Make for 2020
– When calculating your 2019 contribution limit: Amount of Roth IRA Contributions That You Can Make For 2019
• If contributing to a Traditional IRA, you can contribute the maximum amount unless your income is less than the max. However, whether or not you can take a tax deduction depends on a few factors, like income, filing status, or whether you (or your spouse) have a retirement plan at work. Please visit this IRS link or consult your tax advisor for more information.
Please note these limits apply to all contributions to all of your Traditional and Roth IRA accounts. These limits are not per account or investment firm.
For additional information, please visit: Retirement Topics – IRA Contribution Limits