A Guide to IRA Contributions

Almost anyone can contribute to a traditional IRA, or Roth IRA, provided you (or your spouse) receive taxable income and you are under age 70½.

For 2020, your total combined annual contributions to your traditional and Roth IRAs cannot be more than:

  • $6,000 for those up to age 49;  $7,000 for those age 50 and older
  •  Your taxable compensation for the year, if your compensation was less than $6,000 (or $7,000 for age 50+.)   

The IRA contribution limits for 2019 are the same as 2020. Contributions can be made up until you file your tax return, and the date to file for tax year 2019 has been extended to July 15, 2020.

Required Minimum Distributions (RMDs) for 2020 are completely waived for IRAs and do not need to be made up next year. 

For information about The CARES Act Key Components, click here, or contact a Black Diamond Planners team member

This commentary was created by Black Diamond Planners and is for informational purposes only. The views expressed are based on current market conditions and are subject to change. There are no assurances that techniques and strategies discussed herein are suitable for all investors or that predicted results will occur. The commentary herein does not constitute investment advice, tax advice, or legal advice. All investments are subject to risk, and past performance is no guarantee of future results.

The Cares Act Key Components