IRA Contribution Deadline and Limits

It’s not too late to make a contribution to your IRA for 2018, as the deadline is the tax filing date, which is Monday, April 15. However, it’s generally not a good idea to wait until the last minute. The contribution limit for 2018 is $5,500 to any combination of IRAs or Roth IRAs, as long as the total doesn’t exceed $5,500, unless you qualify for a catch-up contribution. If you were 50 or older by the end of 2018, you can contribute an additional $1,000. Anyone under age 70.5 with earned income is eligible to make an IRA contribution; however, whether you can deduct your contribution or contribute to a Roth IRA depends on various factors.

Phase-Out Ranges for IRA and Roth IRA Contributions

If you are an active participant in a company retirement plan, your ability to deduct an IRA contribution may be limited. For married couples filing jointly, the phase-out for deductibility begins at a modified adjusted gross income (MAGI) between $101,000 and $121,000; above this range, no deduction is allowed. For single or head of household filers, the phase-out starts between $63,000 and $73,000. If you are not covered by a company plan, but your spouse is, the phase-out range is $189,000 to $199,000. Additionally, spousal IRA contributions have the same phase-out range of $189,000 to $199,000.

If neither you nor your spouse is covered by a company retirement plan, there is no income limitation for IRA deductions. Eligibility for Roth IRA contributions for married couples filing jointly is phased out between $189,000 and $199,000, and for single or head of household filers, the phase-out is between $120,000 and $135,000.

If you have any questions about your eligibility for IRA contributions or deductions, reach out to your relationship manager to discuss your situation.

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