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:
|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|