2020 Roth IRA Contribution Limits
The IRS released its 2020 update to income and contribution limits for Roth IRAs. This year, it remains flat–no change from the bump we got in 2019. If you recall, for the first time in several years, IRA contribution limits actually increased last year. Since 2013, the maximum contribution has been $5,500, but in 2019 it rose to $6,000. The catch-up contribution for those 50 or older, which is not indexed for inflation, still remains $1,000. Remember that the IRA contribution limits apply to any of your IRAs combined–Roth and traditional. So you can contribute up to $6,000 (or $7,000 if you’re aged 50 or older) to any combination of IRAs.
In addition, the maximum deductible amount you contribute to a traditional IRA and the maximum amount you contribute to a Roth IRA may be reduced depending on whether or not you are covered by an employer-sponsored retirement plan and your income. For a traditional IRA, you can still contribute up to the maximum, but your full contribution may not be tax-deductible. For a Roth IRA, your maximum contribution may be limited by your income or, if your income is high enough, you may be unable to contribute to a Roth IRA at all.
See this information in table form below:
|Tax Year||Contribution Limit (for taxpayers under age 50)||Contribution Limit (for taxpayers age 50 or over by the end of the year)|
Roth IRA Income Limits
Before you get too excited about a Roth IRA, remember that your income can disqualify you from opening one or can limit the amount you can contribute to one. To determine your eligibility, you need to know your modified AGI (adjusted gross income) and filing status.
The income limits typically rise a bit every year because of inflation. For 2020, the Roth IRA contribution limit is phased out based on the following income levels:
- For single or head of household filers, the phase-out range is $124,000 to $139,000. If your modified AGI is more than or equal to $139,000, you cannot contribute to a Roth IRA. If it is between those two amounts, you can contribute a reduced amount to your account.
- For those who are married filing jointly*, the phase-out range is $196,000 to $206,000. If your combined, modified AGI is more than $206,000, you cannot contribute to a Roth IRA in 2020. And if your income is within the phase-out range, you can contribute a limited amount.
- Finally, if your filing status is married filing separately (you live with your spouse at any time during the year), the phase-out range is $0 to $10,000. If you make more than $10,000 and file as married filing separately*, you cannot contribute to a Roth IRA in 2020.
Check out this information, along with historical income limits, in table form below:
|Tax Year||Single/Head of Household Filers||Married Filing Jointly/Qualified Widow(er) Contributions||Married Filing Separately*|
|2020||$124,000 - $139,000||$196,000 - $206,000||$0 - $10,000|
|2019||$122,000 - $137,000||$193,000 - $203,000||$0 - $10,000|
|2018||$120,000 - $135,000||$189,000 - $199,000||$0 - $10,000|
|2017||$118,00 - $133,000||$186,000 - $196,000||$0 - $10,000|
|2016||$117,000 - $132,000||$184,000 - $194,000||$0 - $10,000|
|2015||$116,000 - $131,000||$183,000 - $193,000||$0 - $10,000|
|2014||$114,000 - $129,000||$181,000 - $191,000||$0 - $10,000|
|2013||$112,000 - $127,000||$178,000 - $188,000||$0 - $10,000|
|2012||$110,000 - $125,000||$173,000 - $183,000||$0 - $10,000|
|2011||$107,000 - $122,000||$169,000 - $179,000||$0 - $10,000|
|2010||$105,000 - $120,000||$167,000 - $177,000||$0 - $10,000|
*Note: If you file married, filing separately and do not live with your spouse at any point during the tax year, you can use the limits for single/head of household filers. If you do live with your spouse at any point during the year, you’ll be limited to the $0-$10,000 phase out range.
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