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IRAs (Individual Retirement Accounts)

The Traditional IRA

You can establish a traditional IRA whether or not you are covered by any other retirement plan. Wages or net earnings from self-employment can serve as the basis for a traditional IRA contribution. Traditional IRA contributions are not limited by annual income.

The SECURE Act of 2019 removed the age limit at which an individual can contribute to a traditional IRA. Prior to 1/1/2020, an individual could not contribute after age 72 (70 ½ if you reach 70 ½ before January 1, 2020). The Act now allows anyone that is working and/or has earned income to contribute to a Traditional IRA regardless of age.

You can contribute up to the lesser of 100% of your earned income or $6,000 for 2019. For 2020, you can contribute up to the lesser of 100% of your earned income or $6,000. Once you reach age 50, contribution limits on IRAs increase by another $1,000. This allows for a "catch-up" contribution for those nearing retirement.

Total annual contributions to your traditional and Roth IRAs combined cannot exceed:
2019: $6,000, 2020: $6,000 (under age 50)
2019: $7,000, 2020: $7,000 (age 50 or older)

You can wait as long as April 15 of the following year (the due date of your individual income tax return) to contribute to a traditional or Roth IRA account.

 

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United Northeast Financial Advisors

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. United Wealth Management is a trade name of United Bank. Infinex and United Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.