IRA Contribution Rules

The maximum contribution for 2020 contributions is $6,000 ($7,000 if age 50 over over). There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution.
Roth or Traditional IRA? - Parsec Financial

[vc_row][vc_column][vc_column_text]The maximum contribution for 2020 contributions is $6,000 ($7,000 if age 50 over over).

There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution. The following table gives the phase-out range for the most common circumstances. Keep in mind that if neither you nor your spouse participates in a work-sponsored plan, you can deduct IRA contributions regardless of your income.

Do you qualify to deduct your Traditional IRA contribution?

If your income is less than the beginning of the phase-out range, you qualify. If your income is over the phase-out range, you do not. If your income falls inside the range, you partially qualify.

Modified Adjusted Gross Income Phase-Out Range[/vc_column_text][vc_row_inner css=”.vc_custom_1546641702733{padding-top: 0px !important;}”][vc_column_inner][vc_column_text][table id=2 /][/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner css=”.vc_custom_1546642010007{padding-bottom: 0px !important;}”][vc_column_inner][vc_column_text]

Do you qualify to contribute to a Roth IRA?

Modified Adjusted Gross Income Phase-Out Range – Roth[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner css=”.vc_custom_1546641990349{padding-top: 0px !important;}”][vc_column_inner][vc_column_text][table id=3 /][/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text]If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.[/vc_column_text][/vc_column][/vc_row]

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