Mutual Fund Resource Center

Planning for Retirement


IRA Limits and Deductibility

ANNUAL CONTRIBUTION LIMITS

The maximum regular contribution per individual for Traditional and Roth IRAs is the lesser of the annual contribution limit or 100% of earned income. "Catch-up" contributions can be made by IRA owners age 50 or older once they have reached their maximum regular contribution.

Annual Contribution Limits:

Year Limit Catch-Up
2018 $5,500 $1,000
2019 $6,000 $1,000
2020 $6,000 $1,000
Note: The limits above are contribution limits only. To open an IRA at Guggenheim Investments, the account must have a minimum initial balance of $5,000.


 TRADITIONAL IRA DEDUCTIBILITY CHARTS FOR TAX YEAR 2020

IF YOU ARE  COVERED BY A RETIREMENT PLAN AT WORK
If your filing status is... And your MAGI is... Then you can take...
Single $65K or less a full deduction.
more than $65K but less than $75K a partial deduction.
$75K or more no deduction.
Married filing jointly $104K or less a full deduction.
more than $104K but less than $124K a partial deduction.
$124K or more no deduction.
Married filing separately less than $10K a partial deduction.
$10K or more no deduction.
 
IF YOU ARE NOT  COVERED BY A RETIREMENT PLAN AT WORK
If your filing status is... And your MAGI is... Then you can take...
Single any amount a full deduction.
Married filing jointly with a spouse who is NOT covered by a plan at work any amount a full deduction.
Married filing jointly with a spouse who IS covered by a plan at work $196K or less a full deduction.
more than $196K but less than $206K a partial deduction.
$206K or more no deduction.
Married filing separately with a spouse who IS covered by a plan at work less than $10K a partial deduction.
$10K or more no deduction.

ROTH IRA ELIGIBILITY CHART FOR TAX YEAR 2020

If your filing status is... And your MAGI is... Then you can...
Single less than $124K make a full contribution.
$124K to $139K make a reduced contribution.
$139K or more not contribute.
Married filing jointly less than $196K make a full contribution.
$196K to $206K make a reduced contribution.
$206K or more not contribute.
Married filing separately less than $10K make a reduced contribution.
$10K or more not contribute.
 

Resources

2020 IRA Deduction Limits - Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work

2020 IRA Deduction Limits - Effect of Modified AGI on Deduction if You Are NOT Covered by a Retirement Plan at Work

Amount of Roth IRA Contributions That You Can Make For 2019

This information does not constitute tax advice. Please consult your tax advisor and/or state and local tax offices for more complete information.



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