Q. What are the rules for traditional IRA and Roth IRA contribution rules?
A. We will share the traditional IRA contribution rules and limitations in this blog post, and share the Roth IRA contribution rules in our next blog post.
Individual contribution amount limit: $5,500 per year in 2014 and 2015. If you were age 50 or older as of Dec. 31, 2014, you can contribute up to $6,500 for the 2014 tax year. If you will be age 50 or older as of Dec. 31, 2015, you can contribute up to $6,500 for the 2015 tax year.
If you’re married, the same limits apply to your spouse if he or she wants to fund a separate IRA. As a result, the two of you can contribute up to $11,000 (2 x $5,500) and maybe even up to $13,000 (2 x $6,500).
Must have earned income: you, and/or your spouse if you are married, must have earned income at least equal to what you contribute.
If you are unmarried and single and were covered by a retirement plan in 2014, your eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between adjusted gross income (AGI) of $60,000 and $70,000. For 2015, the phase-out range is $61,000-$71,000. (You can contribute to a traditional nondeductible IRA regardless of how high your AGI might be.)
If you are married and both you and your spouse were covered by retirement plans in 2014, your eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between joint AGI of $96,000 and $116,000. Ditto for your spouse. For 2015, the phase-out range is $98,000-$118,000. You can both contribute to traditional nondeductible IRAs regardless of how high your AGI might be.
If you are married and only one spouse was covered by a retirement plan in 2014, the covered spouse’s eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between joint AGI of $96,000 and $116,000. The non-covered spouse’s eligibility is phased out between joint AGI of $181,000 and $191,000. For 2015, the phase-out ranges are $98,000-$118,000 and $183,000-$193,000, respectively. You can both contribute to traditional nondeductible IRAs regardless of how high your AGI might be.
Contribution deadline: you have until April 15 of the following year to make an IRA contribution for the current tax year. Of course, the sooner you contribute, the earlier you can get tax saving benefits.
A. We will share the traditional IRA contribution rules and limitations in this blog post, and share the Roth IRA contribution rules in our next blog post.
Individual contribution amount limit: $5,500 per year in 2014 and 2015. If you were age 50 or older as of Dec. 31, 2014, you can contribute up to $6,500 for the 2014 tax year. If you will be age 50 or older as of Dec. 31, 2015, you can contribute up to $6,500 for the 2015 tax year.
If you’re married, the same limits apply to your spouse if he or she wants to fund a separate IRA. As a result, the two of you can contribute up to $11,000 (2 x $5,500) and maybe even up to $13,000 (2 x $6,500).
Must have earned income: you, and/or your spouse if you are married, must have earned income at least equal to what you contribute.
If you are unmarried and single and were covered by a retirement plan in 2014, your eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between adjusted gross income (AGI) of $60,000 and $70,000. For 2015, the phase-out range is $61,000-$71,000. (You can contribute to a traditional nondeductible IRA regardless of how high your AGI might be.)
If you are married and both you and your spouse were covered by retirement plans in 2014, your eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between joint AGI of $96,000 and $116,000. Ditto for your spouse. For 2015, the phase-out range is $98,000-$118,000. You can both contribute to traditional nondeductible IRAs regardless of how high your AGI might be.
If you are married and only one spouse was covered by a retirement plan in 2014, the covered spouse’s eligibility to make a deductible traditional IRA contribution for the 2014 tax year is phased out between joint AGI of $96,000 and $116,000. The non-covered spouse’s eligibility is phased out between joint AGI of $181,000 and $191,000. For 2015, the phase-out ranges are $98,000-$118,000 and $183,000-$193,000, respectively. You can both contribute to traditional nondeductible IRAs regardless of how high your AGI might be.
Contribution deadline: you have until April 15 of the following year to make an IRA contribution for the current tax year. Of course, the sooner you contribute, the earlier you can get tax saving benefits.
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