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Jump to: Roth IRA – Traditional IRA – Simple IRA – SEP IRA

I. Roth IRAs

1. No Taxes on Capital gains or dividends

2. Tax-free growth – No tax on retirement withdrawals

3. Contributions are not tax deductable

Catch-Up Contributions Age 50+: $1000 Additional

Total combined contributions to Roth and/or traditional IRAs may not exceed these amounts.

Roth IRA Income Limits

Use this 2020 IRA contribution limits chart to find your maximum contribution based on income (AGI).

Your Tax Filing Status Income (Modified AGI) Contribution Limit Single, head of household, or married filing separately and you and your partner did not live together. Up to $124,000 Up to the maximum. From $124,000 to less than $139,000 Phased-out Contributions $139,000 or more Ineligible Married filing jointly Less than $196,000 Up to the maximum. From $196,000 to less than $206,000 Phased-out Contributions $206,000 or more Ineligible Married filing separately and you lived with your partner at least some of the year $0 Up to the maximum. Between $0 and $10,000 Phased-out Contributions Above $10,000 Ineligible

For more information see Roth IRA Limits.

II. Traditional IRAs

1. No Taxes on Capital gains or dividends

2. Tax-deferred growth – Gains taxable upon withdrawal

3. Contributions are tax deductible

Catch-Up Contributions Age 50+: $1000 Additional

Total combined contributions to Roth and/or traditional IRAs may not exceed these amounts.

Traditional IRA Deduction Limits

Use the following 2020 IRA deduction chart to determine your maximum deduction based on income.

You are Covered by Another Plan at Work You Are Not Covered by Another Plan at Work Tax Filing Status Your Income

Modified Gross Adjusted 2020 Traditional IRA Limit Your Income

Modified Gross Adjusted 2020 Traditional IRA Limit Single or head of household $65,000 or less Full Deduction Anything Full Deduction! More than $65,000 and less than $75,000 Phased-out deduction $75,000 or more Ineligible Married filing jointly $104,000 or less Full Deduction up to the maximum. $196,000 or less Full Deduction up to the maximum. More than $104,000 to less than $124,000 Phased-out Deduction More than $196,000 to less than $206,000 Phased-out Deduction $124,000 or more Ineligible $206,000 or more Ineligible Married filing separately Less than $10,000 Phased-out Deduction Between $0 and $10,000 Phased-out Deduction $10,000 or more Ineligible Above $10,000 Ineligible

For more information visit Traditional IRA Regulations.

III. Simple IRAs

1. Employers required to contribute

2. Similar to 401k

3. Easy Setup

Catch-Up Contributions Age 50+: $3000 Additional

If you participate in additional salary reduction plans offered by your employer, total contributions may not exceed $19,500 not including catch-up contributions.

For Employers

Matching Contributions – Up to 3%

Non-elective Contributions – 2% of employee’s salary

For more information visit the Simple IRA Rules.

IV. SEP IRAs

1. Contributions are Deductible

2. Highest Contribution Limits

3. Low Administrative Costs For Self-Employed and Small Business Owners



Max Contribution Limits

25% of an Employee’s Salary

or

or $57,000

Whichever is smaller



Catch-Up Contributions: None Allowed

If you participate in additional salary reduction plans offered by your employer, total contributions may not exceed 25% of your net earnings from self-employment (not including contributions for yourself), up to $57,000.

For Employees

If your SEP IRA allows for non-SEP contributions, then you can make tax-deductible contributions up to your maximum IRA limit generally $6,000-7,000.

For more information visit SEP IRA Rules.