IRA Contribution Deadline: Don’t Wait Until the Last Minute

It’s not too late to make an IRA contribution for 2017, but keep in mind that the deadline is the tax filing date, which falls on Tuesday, April 17. While it’s still possible to make a contribution up until the deadline, it’s generally not a good idea to wait until the last minute. The maximum IRA contribution limit for 2017 is $5,500, which can be split between a traditional IRA and a Roth IRA. However, this total cannot exceed $5,500 unless you’re eligible for the catch-up contribution of $1,000 (if you were 50 years old or older by the end of 2017). Anyone under 70.5 with earned income is eligible to make an IRA contribution, though whether you can deduct it or contribute to a Roth IRA depends on several factors.

Phase-Out Range for IRA Deductibility

If you’re an active participant in a company retirement plan, your ability to deduct your IRA contribution may be limited. For those married filing jointly, the deductibility phase-out starts at an adjusted gross income (AGI) of $99,000 and ends at $118,999—above that, no deduction is allowed. For single filers or heads of household, the phase-out begins at an AGI of $62,000 and ends at $72,000. If your spouse is covered by a company retirement plan but you are not, the phase-out range for deductibility is $156,000 to $195,999. Additionally, IRA contributions can be made on behalf of a non-working spouse through spousal IRA contributions, with the same phase-out range as noted above for married couples.

It’s important to verify your status as an “active participant” in a company plan, as even if you’re not directly enrolled, you may still be considered one. If neither you nor your spouse participates in a company retirement plan, there is no income limitation for making a deductible IRA contribution.

Eligibility for Roth IRA Contributions

Roth IRAs have different eligibility requirements based on income. For married couples filing jointly, the eligibility phase-out for Roth IRA contributions starts at an AGI of $186,000 and ends at $195,999; above that, you are no longer eligible to contribute. For single filers or heads of household, the phase-out begins at an AGI of $118,000 and ends at $132,999.

If you’re unsure about your eligibility for IRA or Roth IRA contributions, or if you have questions regarding your tax situation, feel free to reach out to your relationship manager for guidance tailored to your specific circumstances.

This website commentary reflects the personal opinions and analyses of Gainplan LLC employees. It does not describe Gainplan LLC’s advisory services or client investment performance. Views in the commentary may change anytime without notice. Nothing here constitutes investment advice, performance data, or recommendations for specific securities, transactions, or strategies. Mentioning a security or its performance is not a buy or sell recommendation. Gainplan LLC uses various investment strategies, not all discussed here. Investing in securities carries risks, including loss. Past performance does not guarantee future results.

Gainplan LLC provides links to third-party websites for convenience. Clicking these links leaves our website. Gainplan LLC is not responsible for errors, omissions, or content on third-party sites and does not necessarily endorse their information. Users accessing these sites must follow their terms and assume all risks.