How much can I contribute to an IRA?

  1. You can contribute the lesser of $5,500 or your eligible compensation
    1. Eligible compensation is your W-2 wages and any other income to which you pay self-employment taxes
  2. If you are age 50 or older in the calendar year for which the IRA is being contributed, you can make a “catch-up” contribution of $1,000, thus increasing the dollar limitation to $6,500
  3. Contribution limits can change year by year given an inflation calculation.

Is there a deadline for making my IRA contribution?

Yes, by the normal filing date of your personal tax return for the year you wish to make a contribution, generally April 15.

  1. For example, you wish to make an IRA contribution for year 2018. If not directly deposited, its delivery by U.S. Mail must be postmarked by April 15, 2019.

My spouse does not have any wages. Can he or she make an IRA contribution?

Yes, but the contributions to an IRA for your benefit and that of your spouse cannot exceed the total of your compensation.

Can I contribute to my IRA if I contribute to my 401(k)?

Yes, but the real question is, “can the contribution can be tax-deductible?”

Can my spouse and I deduct an IRA contribution?

  1. Yes, if you or your spouse are not “covered” by a workplace retirement plan.
    1. Look at Box 13 on the Form W-2 you receive from your employer for a check mark in the “Retirement plan” box. If it’s checked, your IRA contribution may be limited. If you are still not certain, check with your (or your spouse’s) employer.
  2. Maybe. If you or your spouse are “covered” by a workplace retirement plan, there are limits on how much of your IRA contribution can be deducted.
    1. Check Box 13 on Form W-2
  3. If you or your spouse are “covered” by a workplace retirement plan, the amount you can deduct depends on your filing status and the amount of your “modified adjusted gross income” or MAGI:
    1. Filing Single or Head of Household
      1. Your MAGI is $61,000 or less: full deduction
      2. Your MAGI is more than $61,000 but less that $71,000: partial deduction
      3. Your MAGI is $71,000 or more: no deduction
    2. Married Filing Jointly or Qualifying Widow(er)
      1. Your MAGI is $98,000 or less: full deduction
      2. Your MAGI is more than $98,000 but less than $118,000: partial deduction
      3. Your MAGI is $118,000 or more: no deduction
    3. Married Filing Separately
      1. Your MAGI is $10,000 or less: partial deduction
      2. Your MAGI is $10,000 or more: no deduction