Traditional IRA Contributions
The traditional IRA contribution limit is $6,000 for 2019 and 2020. This is the first increase since 2013!
The traditional IRA contribution limit is $7,000 for 2019 and 2020 if you are 50 years old or older.
Contributions for 2019 can be made until April 15, 2020.
The December 2020 tax law made several important changes affecting traditional IRAs as follows:
Moving the start date for required minimum distributions (RMDs) to the year in which the owner turns 72
Ending the 70 ½ age limit for contributions
Shortening the distribution period for non-spouse inherited IRAs to a 10-year maximum
You must have "earned income" to contribute to an IRA. Earned income includes money from wages, salaries, tips, bonuses, commissions, and self-employment income. If you are married filing jointly, a non-working or low-income spouse can make an IRA contribution. This spousal IRA rule allows a spouse with minimal earnings to “borrow” compensation from his or her spouse in order to reach the maximum contribution limit.