What is best for you?
For 2019 and 2020, your total contribution to all of your traditional and Roth IRAs cannot be more than:
• $6,000 ($7,000 if you are age 50 or older).
• Your taxable compensation for the year, if your compensation was less than this dollar amount.
For 2019, if you are 70 ½ or older, you can’t make a regular contribution to a traditional IRA.
For 2020 or later, there is no age limit on making regular contributions to traditional or Roth IRAs.
You can contribute to a traditional or Roth IRA whether or not you participate in another retirement plan through your employer or business. However, you might not be able to deduct all of your traditional IRA contributions. Roth IRA contributions might be limited if your income exceeds a certain level. Consult your tax preparer for details.
SEP plans (that are not SARSEPs) only allow employer contributions. For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $57,000 for 2020 ($56,000 for 2019).
Need assistance with your contributions? Call for a complimentary consultation.
Pat Frederiksen
303-919-1020
Investment Adviser Representative of and investment advisory services offered through Royal Fund Management, LLCC, a SEC Registered Investment Adviser.
