Roth IRA Limits

The IRS announced the contribution and income limits for the 2020 calendar year. For 2020, these limits are:

Contribution Limits Unchanged

The total amount you can contribute to either a Roth IRA or a Traditional IRA remains unchanged at $6,000. People 50 and over can contribute an additional $1,000 for a total of $7,000. Unfortunately, these limits (as you can see below) hasn’t been changed for a couple of years now and most likely will not go up in 2021.

Income Limits Bumped Up

You can only contribute to a Roth IRA, however, if your income is below a certain threshold. For single filers in 2020, that income threshold starts at $124,000 and ends at $139,000. For married filers in 2018, that income threshold starts at $196,000 and ends at $206,000.

The comparative figures for 2020 to 2017 are:

Year 2020 2019 2018 2017
Roth IRA Contribution Limit $6,000 $6,000 $5,500 $5,500
Roth IRA Contribution Limit (50 or over) $7,000 $7,000 $6,500 $6,500
Roth IRA Income Limits (for single filers) Phase-out starts at $124,000; Ineligible at $139,000 Phase-out starts at $122,000; Ineligible at $137,000  Phase-out starts at $120,000; ineligible at $135,000 Phase-out starts at $118,000; ineligible at $133,000
Roth IRA Income Limits (for married filers) Phase-out starts at $196,000; Ineligible at $206,000 Phase-out starts at $193,000; Ineligible at $203,000  Phase-out starts at $189,000; ineligible at $199,000 Phase-out starts at $186,000; ineligible at $196,000
The guy next door
Dee is a technologist and a personal finance hobbyist. With over 15 years of experience in the financial domain, Dee started following the philosophy of FIRE since 2016 and is on track to reach the goal of FIRE in 10 years. He wants to teach you on how to achieve Financial Independence within a decade. All content on this site is an opinion and is for information purposes only.  It is not intended to be investment or tax advice.  Seek a duly licensed professional for investment and tax-related advice

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