More Time to Contribute to IRAs

Now that IRS tax filing and payment deadlines are extended to July 15, 2020, there’s more time to contribute to IRA accounts. Contributions to IRA accounts may be made up to the new deadline date, July 15, 2020.

General Limit for both 2019 and 2020; you can contribute to a traditional IRA up to:
• $6,000, or
• $7,000 if you were age 50 or older by the end of the year

Were you or your spouse covered by a retirement plan at work? Deductions for contributions to traditional IRAs are phased out over certain income thresholds when you or your spouse are covered by a retirement plan at work. Today’s SoundCPA Insights for Individuals looks at tax advantages of IRA accounts, what’s new in 2020 and compares deduction phaseouts for 2019 and 2020.