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Retirement Planning > Individual Investors > Traditional IRAs 2021 What is the deadline for contributing to an IRA? What is the deadline for contributing to an IRA for 2021? How much can I contribute to IRA 2021 or 2020? What are the IRA contribution limits for 2021 and 2020?

 

 

How much can I contribute to a Traditional IRA? IRA?


Traditional IRAs

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Funding Reference

 

Traditional IRA Contribution Limits 2020

 

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What is an Individual Retirement Account?What is an IRA? IRA Definition

Traditional IRA Contribution and Deduction Limits ~ 2020 & 2021

How much money can I put into my IRA (if I am eligible to make a tax-deductible contribution)?


Quick Links: Traditional IRA Contribution Limits 2020

What are the IRA contribution limits for 2020 & 2021? $6,000 ($7,000 age 50 and better)

What is the deadline for contributing to an IRA? 

Am I eligible to make a tax-deductible IRA contribution? 

 


 

What are the IRA Contribution Limits for 2020 & 2021?  How much can I contribute to IRA 2020?  

Traditional & Roth IRA Contribution Limits

How much money can I put in my IRA?

Contribution limits are the same for both Traditional and Roth IRAs. However, it is important to review IRS contribution and income rules with your tax advisor each year to ensure that you are eligible to make a contribution.

You may make an eligible contribution for your 2021 Traditional or Roth IRA at any time prior to the 2021 IRS tax filing deadline which is Friday, April 15, 2022, unless special circumstances apply to your legal residence (E.g., Patriots Day or Emancipation Day). Your account must be funded or have proof of postmark by this date! For brokerage accounts - please check to see our clearing firm's required cutoff date for eligible contributions. 

Please Note: For 2020 and 2021, your total contributions to all of your Traditional and Roth IRAs (combined for the given tax year) cannot be more than:
         

 

Under Age 50  

 

Total

Under Age 50  

 

Over Age 50

Additional 

 Total

Over Age 50

2021* **

$6,000

Catch-up Contribution

$1,000

$7,000

2020* **

$6,000

Catch-up Contribution

$1,000

$7,000

 Source: irs.gov

You may make an eligible contribution for your 2021 Traditional or Roth IRA at any time prior to the 2021 IRS tax filing deadline which is Friday, April 18, 2022. (Your account must be funded or have proof of postmark by this date! For brokerage accounts - please check to see our clearing firm's required cutoff date for eligible contributions.) We can generally open and fund accounts (make your contributions) with investment companies (think mutual funds) right up to the deadline (as long as you can get your contributions postmarked before the deadline).

The same general contribution limit applies to both Roth and Traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income.

"Total" means your total contributions to all of your Traditional and Roth IRAs combined for the given tax year. You cannot exceed the total amount/contribution limit regardless of how many IRAs you have or the type/types of IRA(s) that you may have.

*Or your taxable compensation for the year.                                                                                                                                                           

** Effective for the tax year 2002 and beyond, for participants who are eligible to make an IRA contribution and have attained the age of 50 before the end of the taxable year, the participant can make a "catch-up" contribution in addition to the normal contribution amount as shown in the table above. The catch-up contribution was $500 from 2002-2005. For the year 2006 and beyond, the catch-up contribution limit will be $1000. The maximum contribution cannot exceed 100% of the actual compensation. Learn more about COLA Increases for Dollar Limitations on Benefits and Contributions from the IRS.

 

Please note that the IRA contribution limit does not apply to:

  • Rollover contributions
  • Qualified reservist repayments

 

Deductibility limits can be confusing and tax laws are frequently changing. It is always best to review your specific situation and/or circumstances with a qualified tax advisor.

 

Open an IRA online or call us at 1-800-50-PLACE or 1-919-719-7200 to speak with an experienced retirement specialist to help you roll over your old retirement account or help you start planning for retirement today!  

 

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

What is the deadline for contributing to an IRA? What is the deadline for contributing to an IRA for 2020? 

Traditional & Roth IRA Contribution Deadlines

 

 

2021

For the 2021 tax year (ending December 31, 2020), you may continue to make eligible contributions to an IRA (Traditional or Roth IRA) between January 1, 2020 and Friday, April 15, 2022.

 

2020 

For the 2021 tax year (ending December 31, 2020), you may continue to make eligible contributions to an IRA (Traditional or Roth IRA) between January 1, 2020 and Monday, April 15, 2021. 

Looking for more info on contributing to a 2020 IRA? Check these out: 

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


Why Should You Open an IRA? Why Should I Open an IRA?      

 

Are you eligible to make a tax-deductible IRA contribution?

Whether or not you are eligible to make a tax-deductible IRA contribution this year depends on several factors including your income if either you or your spouse has a retirement plan at work and a number of other factors. To get started we have listed a few of the important questions that you should ask yourself, and review with your tax and/or legal advisor, to find out if you may be eligible to make a tax-deductible IRA contribution this year:

 

 

 

Can I contribute to an IRA if I participate in a retirement plan at work?

 

Are you (or your spouse) covered by a retirement plan at work? 

 

What if you (or your spouse) are NOT covered by a retirement plan at work?

 

What does "covered by" an Employer's Retirement Plan mean?

 

Can I contribute to both a Roth IRA and a Traditional IRA in the same year?

 

Can I make a contribution to an IRA after age 70½? 

 

How much can I contribute to an IRA (if I am eligible)? 

 

 

 

 

Find out if you can make a tax-deductible contribution to your IRA by based on your personal situation. In addition to the effect of modified AGI on deductible contributions, you must consider whether or not either you (or your spouse) are covered by a retirement plan at work, how you file your taxes and more. Be sure to review your personal situation with your tax advisor prior to making any tax-related decisions or investments.

 Is my IRA contribution deductible? Can I deduct my ira contribution? Is my Roth IRA Contribution deductible? Can I deduct the money that I put in m my Roth IRA?  

 

 

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


How much can I contribute to IRA 2020?

What are the Traditional IRA Deduction Limits for 2021? 

Effect of Modified AGI on Your Ability to Make a Tax-deductible Contribution Effect of Modified AGI on Deduction

What are the IRA contribution limits for 2020? Deductibility Limits

If You ARE Covered by a Retirement Plan at Work

If you are covered by a retirement plan at work, use this table to help determine if your modified AGI affects the amount of your deduction. Please note that the deduction is limited only if your spouse IS covered by a retirement plan (IRS).

If Your Filing Status Is...

And Your Modified AGI Is... Then You Can Take...
Single or
Head of Household

$66,000 or less

a full deduction up to the amount of your contribution limit

more than $66,000 but less than $76,000

a partial deduction

$76,000 or more

no deduction

Married Filing Jointly or Qualifying Widow(er)

$105,000 or less

a full deduction up to the amount of your contribution limit

 more than $105,000 but less than $125,000

  a partial deduction

 $125,000 or more

no deduction

Married Filing Separately

 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.     

The IRA contribution limit does not apply to Rollover contributions or Qualified reservist repayments.

 

 

 

Eligibility

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

How much can I contribute to a Traditional IRA 2020? What are the IRA contribution limits for 2020?

What are the Traditional IRA Deduction Limits for 2021? 

Effect of Modified AGI on Your Ability to Make a Tax-deductible ContributionEffect of Modified AGI on Deduction

 

If You are NOT Covered by a Retirement Plan at Work Deductibility Limits

If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Please note that the deduction is limited only if your spouse IS covered by a retirement plan (IRS).

If Your Filing Status Is...

And Your Modified AGI Is... Then You Can Take...
Single, Head of Household or 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

$198,000 or less

a full deduction up to the amount of your contribution limit

more than $198,000 but less than $208,000

a partial deduction

$208,000 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.    

 

Please view IRS Publication 590: Publication 590-A (Contributions to Individual Retirement Arrangements (IRAs)) and IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for more details and speak with your tax advisor prior to making any decisions. 

Please be sure to look for the matching tax year when reviewing IRS Publication 590 (Publications 590-A and 590-A). We have included these links to the IRS website's pages covering Publications 590-A and 590-A for your convenience. The IRS site still shows the 2019 publications as of February 10, 2021. 

 

Eligibility

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

 

What does "covered by" an Employer's Retirement Plan mean? 

 

If you (or your spouse) are covered by an Employer's Retirement Plan, then

 

The Form W-2 that you receive from your employer has a box that is used to indicate whether you were covered for the year. If you were covered, then the "Retirement plan" box should be checked.

Reservists and volunteer firefighters should also see "Situations in Which You Aren’t Covered" in IRS Publication 590-A for more information.

If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer.

 

Eligibility

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


Learn how easy it is to Transfer your IRA account (from another firm) to an existing account Place Trade®

Is my IRA contribution deductible? Can I deduct my ira contribution? Is my Roth IRA Contribution deductible? Can I deduct the money that I put in my Roth IRA?

 you contribute to an IRA if you have a retirement plan at work?

How much can I contribute to an IRA 2020?

Can I contribute to an IRA if I participate in a retirement plan at work?
 

You can contribute to a Traditional or Roth IRA whether or not you (or your spouse) participate in another retirement plan through your employer or business. However, it is important to note that:

  • Traditional IRAs: You may not be able to deduct all of your traditional IRA contributions if you or your spouse participate in another retirement plan at work. View Deductibility Limits for Traditional IRAs.
  • Roth IRAs: You may not be able to make a Roth IRA contribution or your contribution may be limited if you make too much money. Please review the chart below to see if you are eligible to make a Roth IRA contribution. Please remember that Roth IRA contributions are NOT tax-deductible.

Eligibility 


IRAs - Traditional, Roth, SEP, Rollovers and Inherited

 

Can I contribute to both a Roth IRA and a Traditional IRA in the same year?

 

Yes, if eligible, you can contribute to both a Traditional and Roth IRA in the same tax year. However, it is important to note that your total contributions to all of your traditional and Roth IRAs (combined for the given tax year) cannot be more than you are eligible for under the given year's IRA Contribution Limits. You cannot double down and put the maximum in each.

Think of it like this: if you are under 50* and you are fully eligible to make the maximum contribution for the year ($6,000 in 2020 & $6,000 for 2021), You can put a total of the maximum away ($6,000 in 2020 and another $6,000 in 2021) in either a Roth, a Traditional IRA or in any combination of the two as long as you do not exceed the annual contribution limit. *50 and over allows catch-up contributions of an additional $1,000.

 

   

 

For example,

You could split it 50/50 and put $3,000 in each or you could put $500 in your Roth IRA and $5,500 in your Traditional IRA.

You can split it up any way that you would like - just keep in mind that it may not make sense to have an IRA with a super low balance in it because you may not be able to do much with it (as far as diversifying goes) and you may incur account fees (at most firms) that could eat into your long term saving goals. 

 

   

 

The amount that you put in the Traditional IRA will be tax-deductible now and the amount that you put in the Roth will receive tax benefits when you take the money out (unless there are changes to the tax laws or you take an unqualified distribution - which, of course, we do not recommend).  

*If you are 50 or better, you get to add even more money thanks to your Catch-up contributions!

 

 Eligibility


IRAs - Traditional, Roth, SEP, Rollovers and Inherited

 

 

Learn about Rollover IRAs and how easy it is to Transfer your IRA account (from another firm) to an existing account Place Trade®

 

 

Deductibility limits can be confusing and tax laws are frequently changing. It is always best to review your specific situation and/or circumstances with a qualified tax advisor.

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

Can I make a contribution to an IRA after age 70½?

 

 

 

 
Traditional IRA
 
Roth IRA
 
 

 

YES (If you turned 70 ½ in 2020 & later years)

 

  YES  
 

 

 

Contributions to IRAs after age 70½

 

Can I make a contribution to my Traditional IRA after age 70½?
Yes, for tax years 2020 and later, you can make regular contributions to a Traditional IRA in the year you reach 70½ and better.

 

Can I make a contribution to my Roth IRA after age 70½?
Yes, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.

Can I make IRA contributions after age 70½

 Eligibility


 

 

Call us today at 1-800-50-PLACE (1-800-507-5223, 919-719-7200) for more information!>

 

 

 

Open an IRA online or call us at 1-800-50-PLACE or 1-919-719-7200 to speak with an experienced retirement specialist to help you roll over your old retirement account or help you start planning for retirement today!  

 

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

 


 
   

 

  

 Get More Info About Retirement Planning with these Related Links:

 

 

 

 

Retirement Planning

Traditional IRA

Roth IRA

SEP IRA

SIMPLE IRA

Qualified Plans

Rollover IRAs

401(k) Rollover

Leaving your old 401(k) behind

Cashing Out of your 401(k)

Switching Jobs? Know your Options

From Ramen to Retirement

Get Advice or Trade Online

Can I Trade Options or on Margin in my IRA? Yes

Important Information about IRAs in your Place Trade Brokerage Account

 

 

Should you have further questions, please contact our Client Service Center at 919-719-7200. Additionally, you may contact us via live chat or secure message (by logging in to Account Managementfor assistance.

 

________________________________________________________________________

 

What is an IRA? 

 

 

 

 

Open an IRA online or call us to speak with an experienced retirement specialist who can help you roll over your old retirement account or help you start planning for a better retirement today!

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited

 

 

Call us today at 1-800-50-PLACE (1-800-507-5223, 919-719-7200) for more information!

 

 


 
 

Retirement Planning > Individual Investors > RothIRAsWhat is the deadline for contributing to an IRA? What is the deadline for contributing to an IRA for 2020? How much can I contribute to my IRA for 2020 or 2021? What are the IRA contribution limits for 2020 and 2021?

Please click on the links below to open and close each section:

 

 

 

Can I contribute to a Roth IRA?  

Although Roth IRA CONTRIBUTIONS ARE NOT TAX-DEDUCTIBLE, you must be eligible to make a contribution. Use the table below to see if you may be eligible to contribute to a Roth IRA. (This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose. Source: irs.gov) Please be sure to consult with your tax and/or legal advisor prior to making IRA contributions.

 

Will your IRA contribution to a Roth IRA be affected by the amount of your modified AGI?

 

If your filing status is:

2021

And your modified AGI is:

2020

And your modified AGI is:

Then you can contribute:

Married filing jointly or qualifying widow(er)

< $198,000
< $196,000
up to the limit
≥ $198,000 - $205,999.99
≥$196,000 - $205,999.99
a reduced amount
$208,000 or more
$206,000 or more
zero

Married filing separately and you lived with your spouse at any time during the year

Less than $10,000
$193,000
a reduced amount
≥ $10,000
≥ $10,000
Zero
$10,000 or more
$10,000 or more
zero

Single, head of household, or married filing separately and you did not live with your spouse at any time during the year

Less than $124,000
Less than $122,000
up to the limit
≥ $125,000 but < $140,000
≥$124,000 but < $139,000
a reduced amount
≥$140,000 or more
≥$139,000 or more
zero
Call us today at 919-719-7200 to easily set up your Roth IRA or to or rollover your old Roth IRA account to Place Trade!

 


For more information on IRAs, please call us at 919-719-7200 today.

 

 

 

 

Can I contribute to a Roth IRA if I participate in a retirement plan at work?
 

You can contribute to a Traditional or Roth IRA whether or not you (or your spouse) participate in another retirement plan through your employer or business. However, it is important to note that:

 

  • Traditional IRAs:You may not be able to deduct all of your traditional IRA contributions if you or your spouse participate in another retirement plan at work. View Deductibility Limits for 2021 Traditional IRAs.
  • Roth IRAs: You may not be able to make a Roth IRA contribution or your contribution may be limited if you make too much money. Please review the chart below to see if you are eligible to make a Roth IRA contribution. Please remember that Roth IRA contributions are NOT tax-deductible.

 


 

 

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited


 

 

 

 

 

 

Will your contribution to a Roth IRA be affected by the amount of your modified AGI?

 

If You ARE Covered by a Retirement Plan at Work

If you (or your spouse) are covered by a retirement plan at work, your modified AGI  affects the amount of your deduction/the amount that you can contribute and receive a deduction. For example, if you receive a full deduction you can contribute up to the limit of $6,000 (under 50) or $7,000 (50 and up) for both 2020 & 2021.

If your filing status is:

2021

And your modified AGI is:

2020

And your modified AGI is:

Then you can contribute:

Married filing jointly or qualifying widow(er)

Less than $105,000
$104,000 or less
up to the limit
$105,000 but less than $125,000
$104,000 but less than $124,000
a reduced amount
$125,000 or more
$124,000 or more
Zero

Married filing separately and you lived with your spouse at any time during the year

Less than $10,000
Less than $10,000
a reduced amount
> $10,000
> $10,000
Zero
$10,000 or more
$10,000 or more
Zero

Single, head of household, or married filing separately and you did not live with your spouse at any time during the year

Less than $66,000
Less than $65,000
up to the limit
$66,000 but less than $76,000
$65,000 but less than $75,000
a reduced amount
$76,000 or more
$75,000 or more
Zero
Call us today at 919-719-7200 to easily set up your Roth IRA or to or rollover your old Roth IRA account to Place Trade!

 

 


 

 

 

 

IRA Contribution and Deduction Limits Effect of Modified AGI on Deductible Contributions

 

If You are NOT Covered by a Retirement Plan at Work

 

What is your tax filing status?

2021

2020

Allowable Contribution

If your tax filing status is:

And your modified AGI is:

And your modified AGI is:

Then you can contribute:

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

< $198,000
< $196,000
Full/up to the limit
≥$198,000 but < $208,000
≥$196,000 but < $206,000
Partial/a reduced amount
$208,000 or more
$206,000 or more
Zero

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

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

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

Less than $10,000 Less than $10,000 Partial/a reduced amount
$10,000 or more
$10,000 or more
Zero

Single, head of household, or qualifying widow(er)

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

Call us today at 919-719-7200 to easily set up your Roth IRA or to or rollover your old Roth IRA account to Place Trade!

 

IRAs - Traditional, Roth, SEP, Rollovers and Inherited

 

 

 


 

 

 

Can I contribute to both a Roth IRA and a Traditional IRA in the same year?

 

Yes, if eligible, you can contribute to both a Traditional and Roth IRA in the same tax year. However, it is important to note that your total contributions to all of your traditional and Roth IRAs (combined for the given tax year) cannot be more than you are eligible for under the given year's IRA Contribution Limits. You cannot double down and put the maximum in each.

Think of it like this: if you are under 50* and you are fully eligible to make the maximum contribution for the year ($6,000 in 2020 & $6,000 for 2021), You can put a total of the maximum away ($6,000 in 2020 and another $6,000 in 2021) in either a Roth, a Traditional IRA or in any combination of the two as long as you do not exceed the annual contribution limit. *50 and over allows catch-up contributions of an additional $1,000.

 

   

 

For example,

You could split it 50/50 and put $3,000 in each or you could put $500 in your Roth IRA and $5,500 in your Traditional IRA.

You can split it up any way that you would like - just keep in mind that it may not make sense to have an IRA with a super low balance in it because you may not be able to do much with it (as far as diversifying goes) and you may incur account fees (at most firms) that could eat into your long term saving goals. 

 

   

 

The amount that you put in the Traditional IRA will be tax-deductible now and the amount that you put in the Roth will receive tax benefits when you take the money out (unless there are changes to the tax laws or you take an unqualified distribution - which, of course, we do not recommend).  

*If you are 50 or better, you get to add even more money thanks to your Catch-up contributions!

 

 

Can I make a contribution to an IRA after age 70½?

 

 

 

 

 
Traditional IRA
 
Roth IRA
 
 

YES (If you turned 70 ½ in 2020 & later years)

 

  YES

 

 
 

 

 

Contributions to IRAs after age 70½

 

Can I make a contribution to my Traditional IRA after age 70½?

Yes, for tax years 2020 and later, you can make regular contributions to a Traditional IRA in the year you reach 70½ and older.

 

Can I make a contribution to my Roth IRA after age 70½?
Yes, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.

 

 

 

 


 

 

 


 

 

 

 
   

 

________________________________________________________________________

Important Notes: IRA contribution deadline 2020

  • Maine and Massachusetts residents may make prior year 2021 IRA contributions through Tuesday, April 19, 2022.
  • Please be sure to check with your tax and/or legal advisor prior to making any contributions, withdrawals or other changes to your retirement account. Place Trade Financial, Inc. does not offer tax or legal advice. Information provided by Place Trade is for educational purposes and should not be considered as tax or legal advice under any circumstances.
  • Please view IRS Publication 590: Publication 590-A (Contributions to Individual Retirement Arrangements (IRAs)) and IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for more details and speak with your tax advisor prior to making any decisions.
  • Please be sure to look for the matching tax year when reviewing IRS Publication 590 (Publications 590-A and 590-A). We have included these links to the IRS website's pages covering Publications 590-A and 590-A for your convenience. The IRS site still shows the 2019 publications as of February 10, 2021.
 

What is an IRA? 

IRA contribution deadline 2020

Open a Traditional or Roth IRA today and enjoy after-tax benefits while you save for retirement.

 

 

Learn about Traditional IRAs
 

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Learn more about retirement planning by visiting some of the links below:

Roth IRA

SEP IRA

SIMPLE IRA

Traditional IRA

Qualified Plans

Rollover IRAs

Find out how Place Trade can help you get the most out of your college planning by visiting some of the links below:


Coverdell ESA

529 College Savings Plans

UGMA/UTMA Accounts

 

 

 

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