One of the questions we often get this time of year is, “Should I invest in a Roth IRA or a Traditional IRA?” So, to help you as you consider which is best for you, here are some important facts:
- You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70 1/2 or older.
- You can deduct your contributions if you qualify.
- You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see IRS.gov 2018 and 2019 limits).
- Your contributions aren’t deductible.
Contribution information: The most you can contribute to all of your Traditional and Roth IRAs is the smaller of:
- For 2018, $5,500, or $6,500 if you’re age 50 or older by the end of the year…
- Your taxable compensation for that year.
- For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year…
- Your taxable compensation for the year.
What is the deadline to make contributions?
Your tax return filing deadline (not including extensions). For example, you can make 2018 IRA contributions until April 15, 2019.
Was this helpful but need a little more insight? Check-out our article—-Taxes in Retirement, What to Consider Now.
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Please note that nothing in this post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and should not be taken to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Lenity Financial, Inc. unless a client service agreement is in place.