How much can you contribute to an IRA in 2020?

  • $6,000 for those age 49 and under
  • $7,000 for those age 50 and older (use age at end of the calendar year)

These contribution amounts are the same as they have been for the past few years; however, the income limits that apply to determine if you can deduct all or some of the contribution amount have increased slightly.

2020 IRA Contribution and Deduction Limits Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work

If you're not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.

If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take...
singlehead of householdor qualifying widow(er)

 any amount

a full deduction up to the amount of your contribution limit.

married filing jointly or separately with a spouse who is not covered by a plan at work

 any amount

a full deduction up to the amount of your contribution limit.

married filing jointly with a spouse who is covered by a plan at work

$196,000 or less

a full deduction up to the amount of your contribution limit.

more than $196,000 but less than $206,000

a partial deduction.

$206,000 or more

no deduction.

married filing separately with a spouse who is covered by a plan at work

 less than $10,000

 a partial deduction.

 $10,000 or more

 no deduction.

If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "single" filing status.

Note: the contribution limits and income limitations discussed in this article do not apply to SEP IRAs or SIMPLE IRAs - only to the Traditional IRA.

Income Limitations When You - or a Spouse - Have a Company Sponsored Retirement Plan

If you and/or your spouse participate in a company sponsored retirement plan (such as 401(k) or Section 457), you can still make an IRA contribution – but -- it may not be deductible. Income limitations apply to determine if you can deduct your IRA contribution.

What does it mean to participate in a company-sponsored plan? The IRS provides a concise description in Are You Covered by an Employer's Retirement Plan?

Note, a different set of income limitations applies to Roth contributions.

Non-Deductible IRA Contributions

Even if your IRA contribution is not deductible, you can still make a contribution.

It is called a non-deductible IRA contribution and the funds in the account will grow tax deferred until such time as you take a withdrawal.

Or, you may be eligible to make a full or partial Roth IRA contribution. Your total contributions to Roth and Traditional IRAs cannot exceed the dollar limits above, meaning you can contribute to both, such as $2,000 to a Traditional IRA and $3,500 to a Roth, but the total of both contributions can't exceed the maximum contribution amount.

IRA rollovers and transfers do not count as a "contribution" and so they will not affect your ability to fund an IRA.

Earned Income Rules for All IRA Contributions

You must have earned income to make an IRA contribution of any type. The amount of earned income you have must equal or exceed the amount of your IRA contribution. This means if you are retired and no longer working, you may not make an IRA contribution, although you can still rollover or transfer money from a 401(k) to an IRA.

Spousal IRA Contributions

You may make an IRA contribution for a non-working spouse who has no earned income, as long as you have enough earned income. This is called a spousal IRA contribution.

2020 IRA Contribution Deadlines

You have until April 15th of 2020 to make your 2019 IRA contribution.

You have until April 17th of 2020, to make your 2018 IRA contribution.

Traditional IRA or Roth IRA?

Not sure which is best for you? There is no tax deduction for Roth IRA contributions but they have other features that make them one of the most useful retirement account options available.

Traditional IRA or HSA?

HSA stands for Health Savings Account. With a Health Savings Account, you can make a deductible contribution and the money grows tax-free if used for health care expenses. I think many people would benefit from funding an HSA instead of an IRA, as the HSA offers penalty-free access for qualified medical expenses. This allows the HSA to be used to accumulate funds for retirement while doing double duty as an emergency fund for medical expenses in the event you have no other available funds to use to pay for them.

IRA Limits Are Indexed to Inflation

IRA limits are tied to inflation but only go up in $500 increments. If the annual inflation adjustment would only be $150, it would take 4 years before the IRS raised the limit.




This information is not intended to be tax or legal advice, and it may not be relied 
on for the purpose of avoiding any federal tax penalties. You are encouraged to seek 
tax or legal advice from an independent professional advisor.
  • Getting Started
    Learn about saving for retirement using Traditional and Roth IRAs.

    Contribution Limits
    How much can you contribute to your IRA?

    Deduction Limits
    How much of your IRA contributions can you deduct on your taxes?

    Rollovers (See our Rollover Chart)
    The why, what, how, when and where about moving your retirement savings.

    Taking withdrawals from your IRA – when and how much.

    Information for spousal and non-spousal IRA beneficiaries

    Saver’s Credit
    Individuals may be able to take a tax credit of up to $1,000 if they make eligible contributions to an IRA.


    SEP and SIMPLE IRA Plans

    Payroll Deduction IRAs for Employers

    Additional IRA Resources