Part 3: What are the contribution limits for IRAs

Good late evening Women Supporting Women,

Happy Monday to you all!  I hope you had a great weekend.  I had the opportunity to do 3 networking events  and meet some amazing people.  I’m humbled and honored that my client invited me to speak at his event AND I received an award for the work I do in the community.  All of this while my son was home to share these momentous occasions with me.  Sunday, I went to church and dropped my son off at the train station to go back to school.  I say this often because it’s true.  My heart is full 🙂 Do what makes you the happiest!

Now, last week, we went over the different types of IRAs. In the 3rd part of our series, I am sharing with you the limits of the IRAs 2018 and 2019 (2018 because you can still contribute into this year until April 15th).

IRA Limits:

Roth/Traditional IRA contributions –

  • 2018 under age 50 $5500
  • 2019 under age 50 $6000
  • 2018 50 and above $6500
  • 2019 50 and above $7000

Spousal IRA Limits:
In order to contribute into a Spousal IRA these requirements must be met:

You must be married.
You must file a joint income-tax return.
You must have compensation or earned income of at least the amount you contribute to your IRAs.

Spousal IRA Age Limit: 
If you decide to fund a traditional IRA for your spouse, he or she must be under age 70½ for the year for which the contribution is being made. No age limits apply to Roth IRA contributions.

*Please note: The Spousal  IRA limits are the same as the Traditional/Roth, as long as the eligibility requirements are met.

Remember with Roth, if you are a single filer and your Modified Adjusted Gross Income (MAGI), is less than 120K, you can do full contribution limits.  From 120K to 135K you can do partial contributions. For married taxpayers who file jointly, a full Roth IRA contribution can be made if their Modified Adjusted Gross Income (MAGI) is less than $189,000. A partial Roth contribution can be made with MAGI between $189,000-$199,000.

SEP IRA Limits

  • In 2018 $55,000 is the maximum contribution
  • In 2019 $56,000 is the maximum contribution

SIMPLE Limits 

  • 2018 under age 50 $12,500
  • 2019 under age 50 is $13,000
  • 2018 50 and over $15,500
  • 2019 50 and over $16,000

Please review your retirement plans to ensure you are maximizing contributions.  If you have any questions, please feel free to reach out to me in this post or via email at: thefinancialcomforter@gmail.com

Next Up:

Common reasons why you should consider rolling over assets from former employer

Thank you and have a beautiful and blessed week!

Marsha

Changing the lives in our community….one family at a time

 

 

 

 

 

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