It may be the year 2020, but that doesn’t mean you blew your shot at contributing to your IRA for 2019. If you plan to contribute to your IRA for year 2019, you actually have until tax filing deadline (April 15th) to do so. How does that work?
If you own and contribute to a Traditional IRA, your contributions may be tax deductible for the year you contributed. Some individuals determine around tax filing months (January – April) that they need a tax deduction to avoid entering a higher tax bracket. To help individuals and families, IRA contributions can be made for the previous year until tax filing deadline.
In 2019, individuals can contribute up to $6,000 in each IRA (or their taxable compensation for the year, whichever is less). Individuals over the age of 50 can contribute up to $7,000 in each IRA. Income limits may apply, so a consultation with your tax preparer might be advisable.
Have you contributed to your IRA for 2019? Could you benefit from a tax deduction? Contact us in early 2020 to help you contribute towards your IRA.
