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The IRS recently released the IRA contribution limits and income thresholds for 2020. If you haven’t contributed to your Self-Directed IRA yet, consider doing so before the tax deadline to maximize your tax benefits. The tax deadline is April 15, 2020.
Use this chart to determine the IRA contribution and deduction limitations for your individual (Traditional and Roth IRAs), small business/self-employed (SIMPLE and SEP IRAs), or other tax-advantaged retirement plan(s) (ESAs and HSAs):
INDIVIDUAL RETIREMENT PLANS
| Traditional IRA and Roth IRA Contribution Limits |
2019 |
2020 |
| Up to age 50 |
$6,000 |
$6,000 |
| Catch-Up Contributions Age 50+ |
$1,000 |
$1,000 |
| Maximum Contribution if Aged 50 or Over |
$7,000 |
$7,000 |
| Roth IRA Contribution Limits MAGI Phase-Out Ranges |
2019 |
2020 |
| Single Individuals |
$122,000 - $137,000 |
$124,000 - $139,000 |
| Married, Filing a Joint Tax Return |
$193,000 - $203,000 |
$196,000 - $206,000 |
| Married, Filing Separate Tax Returns |
$0 - $10,000 |
$0 - $10,000 |
| Traditional IRA Modified Adjusted Gross Income Limits |
2019 |
2020 |
| Single Individuals |
$64,000 - $74,000 |
$65,000 - $75,000 |
| Married, Filing a Joint Tax Return |
$103,000 - $123,000 |
$104,000 - $124,000 |
| Married, Filing Separate Tax Returns |
$0 - $10,000 |
$0 - $10,000 |
| Spouse of an Active Participant |
$193,000 - $203,000 |
$196,000 - $206,000 |
SMALL BUSINESS RETIREMENT PLANS
| SIMPLE IRA Contribution Limits |
2019 |
2020 |
| Employee Elective Deferrals |
$13,000 |
$13,500 |
| Catch-Up Elective Deferral Contribution Age 50+ |
$3,000 |
$3,000 |
Your employer can elect from two different contribution methods. Check with your employer which option they have chosen. Employer contributions are in addition to your elective deferrals.
| SEP IRA Contribution Limits |
2019 |
2020 |
| SEP Employer Contribution Limits |
Up to 25% of compensation, with a maximum of *$ |
Up to 25% of compensation, with a maximum of **$ |
| SEP Current Year Compensation Limits |
*$56,000 |
**$57,000 |
| Individual 401(k) Plan and Individual Roth 401(k) |
2019 |
2020 |
| Employer Contributions |
Up to $56,000 |
Up to $57,000 |
| Employee Elective Deferrals |
Up to $19,000 |
Up to $19,500 |
| Catch-Up Elective Deferral Contribution Age 50+ |
Up to $6,000 |
Up to $6,500 |
The employer can contribute up to 25% of your compensation up to the maximum limit. Employer contributions and employee elective deferrals combined may not exceed $56,000 for 2019 and $57,000 for 2020. Compensation limits and deductibility apply so contact your employer for further information.
OTHER TAX-ADVANTAGED PLANS
| Coverdell ESA Contribution Limits |
2019 |
2020 |
| Per year until the child is age 18, unless the child has special needs. |
$2,000 |
$2,000 |
| Health Savings Accounts (HSA) Contribution Limits |
2019 |
2020 |
| Single Coverage |
$3,500 |
$3,550 |
| Family Coverage |
$7,000 |
$7,100 |
| HSA High Deductables/Out of Pocket Limits |
2019 |
2020 |
| Single Coverage - Minimum/Maximum |
$1,350 / $6,750 |
$1,350 / $6,900 |
| Family Coverage - Minimum/Maximum |
$2,700 / $13,500 |
$2,700 / $13,800 |
Looking for an easy way to take to the 2020 contribution limits with you? Download our PDF.