2018 IRA Contribution Deadline
If you are like many tax-conscious individuals, you are probably making contributions to a retirement account. For those contributing to an IRA, there is still time to make 2018 contributions to your Traditional, SEP-IRA, or Roth IRA account. The deadline to make these contributions ends on April 15th, 2019 for traditional and Roth IRA’s. However, for those contributing to a SEP-IRA, the contributions are due before the individual files their taxes, which for those who are filing an extension, can be as late as October 15th.
The contribution limits for traditional and Roth IRA’s for the 2018 year remained at the $5,500 for individuals under age 50, or $6,500 for those over age 50 and over. That means there is still time to contribute to your IRA accounts if you have not already met the limit.
A few details to keep in mind:
- You must have earned income to make a contribution to a Traditional or ROTH IRA. Earned income means you were paid for doing a job. It does not include Social Security, investment income or pensions.
- You must be under age 70 ½ to make a contribution to a traditional IRA, but this is not true for a ROTH. Contributions to a ROTH can be made at any age.
- You may contribute to a Traditional IRA regardless of your level of income, however your tax deduction could be phased out if you or your spouse are also contributing to a workplace retirement plan such as a 401k.
- ROTH IRA contributions are not allowed if your income is over a certain threshold. The allowed contribution is phased out starting at an income of $120,000 if your tax filing status is single or $189,000 if your filing status is married filing jointly.
Additionally, 2019 marks the first year that the allowable contribution limit has been raised since 2015. Future retirees can now contribute $6,000, or $7,000 for those over the age of 50, to their traditional and Roth IRA’s. The IRS has posted this information on their website, which can be found by CLICKING HERE. IRA contributions are a great topic to discuss with your financial advisor. Your Surevest advisor knows all these rules and is happy to advise on any questions that you may have.
-Jeremy Kisner, Senior Wealth Advisor
