2018-2019 IRA Contributions Limits & Deadlines

If you’re considering making an IRA contribution for 2018 or 2019, here are some important tips to keep in mind.

LIMITS

For individuals under the age of 50, the maximum contribution limit for 2018 is the lesser of $5,500, or total earned income. For 2019, this limit increases to $6,000.

For individuals age 50 and over, the annual contribution limit for 2018 is the lesser of $6,500, or total earned income. For 2019, this limit increases to $7,000.
The annual limit is the maximum amount that can be contributed across all your IRA accounts.

ELIGIBILITY

For a Traditional IRA, you must be under the age of 70½ at the end of the tax year in order to contribute.
For a Roth IRA, there is no age limit to contribute.

Taxable compensation is required to contribute to an IRA and this includes income from wages and salaries, net self-employment income, tips, commissions, bonuses and alimony. If you’re married and file a joint return, generally only one spouse needs to have compensation.

DEADLINES

You can contribute to an IRA at any time during the year, but to count for 2018, you must make your Traditional or Roth IRA contribution by the due date of your tax return. Tax extensions do not extend the due date. This means your contributions must be made by April 15, 2019. If you contribute between January 1 and April 15, you’ll need to specify the applicable tax year for the contribution. Otherwise, your custodian must apply as a current year contribution.

Employer contributions to a SEP IRA for 2018 must be made for every eligible employee’s SEP IRA account by the tax filing deadline of April 15, 2019, including extensions.
See IRS Publication 590-A for more information on contributing to a Traditional, Roth, SEP or SIMPLE IRA.