2019-2020 Contribution Limits

There was no change to contribution limits for 2020.

Type Of Contribution 2019 Contribution Limits 2019 Deadlines 2020 Contribution Limits 2020 Deadlines
Traditional IRA
$6,000
JULY 15, 2020
$6,000
APRIL 15, 2021
Roth IRA
$6,000
JULY 15, 2020
$6,000
APRIL 15, 2021
Catch-Up*
$1,000
($7,000 MAXIMUM)
JULY 15, 2020
$1,000
($7,000 MAXIMUM)
APRIL 15, 2021
Coverdell
$2,000
JULY 15, 2020
$2,000
APRIL 15, 2021

*For IRA holders 50 or older by December 31st of contribution year.

Choose the IRA that meets your needs

Relax and watch your money grow, when you're tucking it away in an Individual Retirement Account. Our Traditional, Roth or Coverdell Education Savings Account IRAs can meet your future financial needs.

Follow these general rules of thumb in choosing the right IRA:

  1. Choose a Roth IRA if you don't need the tax break right now. It's a more flexible investment because:
    • You can withdraw regular contributions at any time, tax-free and penalty-free.
    • You do not have to take mandatory distributions at age 70 1/2.
    • Earnings are tax-free if account is open 5 yrs and withdrawn for a qualifed reason.
  2. Choose a traditional IRA if you want the tax deduction right now. It also makes sense if you anticipate paying taxes at a significantly lower rate in retirement.

Coverdell ESAs offer tax-free distributions for certain qualified education expenses and unlike section 529 plans, can be used for elementary and high school expenses at most public, private and parochial schools.

2020 IRA Contribution and Deduction Limits

2020 Combined Traditional and Roth IRA Contribution Limits:
If you are under 50 years of age at the end of 2020: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2020. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,000.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

If you are 50 years of age or older before the end of 2020:
The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $7,000 or the amount of your taxable compensation for 2020. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $7,000. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income. 

www.irs.gov

Looking for Additional IRA Information?

For more information on IRA changes or to open an IRA at Diamond Valley Federal Credit Union, contact DVFCU using the button below or call 812-425-5152.

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