This is the time to make sure you are contributing the maximum the IRS allows to your retirement plans. Most plan types have increased their limits from 2019 to 2020. Please let us know if you’d like to make additional contributions for tax year 2019. Also, let us know if you need to increase your monthly automatic contributions to meet the 2020 limits, as this will not happen automatically.
We are happy to check for you to let you know if you have contributed the maximum and/or assist you with changing the monthly automatic investment.
Deadline for IRA & Roth-IRA contributions is April 15th. Your IRA contributions must be postmarked on their way to the IRA custodian (not our office) by that date. The deadline for Simple-IRA is tax filing deadline, including extensions. Please consult your tax advisor regarding any personal income questions that could affect your contribution limits.
If you have any questions whatsoever, please call or CLICK HERE to schedule an appointment with us.
New Limits for 2020 (2019 also included)
IRA Deductibility (for those covered by an employer sponsored plan):
Single - phase out begins over $65k AGI for 2020 (up from $64k for 2019)
Joint - phase out begins over $104k AGI for 2020 (up from $103k for 2019)
Employee contribution limit stays at increases from $13,000 to $13,500
Additional over 50 amount stays at $3,000
SEP-IRA, Solo 401k and Defined Contribution Plan Limits:
Increased from $56,000 to $57,000 (The $19,000 for 2019 and $19,500 for 2020 shown above are the employee portions only, the employer can contribute another ~$30k depending on age.) Annual compensation limit increased from $280,000 to $285,000.
Self-Employed and Business Owners:
It is always good for us to review your plan to determine if you still have the best plan to fit your needs each year. We can change plans, but we cannot do this mid-year. For example, if you currently have a SEP, a Simple IRA may be better depending on the situation.