January 28, 2019
2018 IRA Contribution Reminder
It’s not too late to make an IRA contribution for 2018. The deadline is the tax filing date, which is Monday, April 15, however, generally it is not a good idea to wait until the last minute. The IRA contribution limit for 2018 is $5,500 to any combination of IRAs, or Roth IRAs, as long as the total doesn’t go above $5,500 (unless you qualify for the catch-up contribution, which is $1,000 if you were age 50 by year-end 2018). Anyone under the age of 70.5, with earned income, is eligible to make an IRA contribution; whether you can take a deduction or contribute to a Roth depends on several factors.
Phase-Out Range for IRA Deductibility
If you are considered an active participant in a company retirement plan, your deductibility for an IRA may be limited. If you are married filing jointly, the phase-out for deductibility begins for modified adjusted gross income between $101,000 – $121,000; above that there is no deduction. If you are a single or head of household filer, the phase-out for deductibility begins for adjusted gross income between $63,000-$73,000; above that there is no deduction. If you are not covered by a company plan, but your spouse is, the phase-out range for you is $189,000-$199,000. IRA contributions can also be made on behalf of a non-working spouse. These contributions are known as spousal IRA contributions, and the deductibility phase-out range is also $189,000 – $199,000.
Please note that even though you may not participate in the company plan, you may be considered an “active participant,” so it is important to verify before attempting to take a deduction. If you and your spouse (if applicable) are not covered by a company plan, then there is no income limitation to take a deduction for an IRA contribution.
Eligibility for Roth IRA Contributions
If you are married filing jointly, the phase-out of eligibility to contribute to a Roth IRA is between $189,000 – $199,000 of modified adjusted gross income; above that you cannot make a Roth IRA contribution. For single or head of household filers, the phase-out for eligibility is $120,000 – $135,000.
If you have any questions on IRA contributions, don’t hesitate to contact your relationship manager to discuss your situation.
Gainplan LLC is a Registered Investment Adviser. This blog is solely for informational purposes and not a solicitation to invest. Advisory services are only offered to clients or prospective clients where Gainplan LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gainplan LLC unless a client service agreement is in place. Please contact a financial advisory professional before making any investment.