How Much Can You Contribute to an IRA?
Like 401(k)s, IRAs are a smart way to save money for retirement—and there are limits to how much you can contribute annually. In 2020, the standard contribution limit is $6,000 for individuals, and if you’re age 50 or older, it increases to $7,000. The contribution limit is also impacted by your filing status and whether you participate in a work retirement plan. At higher incomes, your tax-deductible contribution to a regular IRA phases out. Enter your details into our IRA contribution calculator to see how much you are eligible to contribute annually.
IRA Income Limits
While you can contribute to a traditional IRA at any income level, the contribution amount that can be deducted from your taxes changes based on your modified adjusted gross income (MAGI). Use the chart below to see your tax-deductible contribution income limit for a traditional IRA.
| Filing Status | 2019 MAGI | 2020 MAGI | Deduction |
|---|---|---|---|
| Single or head of household | $64,000 or less | $65,000 or less | Full deduction |
| More than $64,000 but less than $74,000 | More than $65,000 but less than $75,000 | Partial deduction | |
| $74,000 or more | $75,000 or more | No deduction | |
| Married filing jointly | $103,000 or less | $104,000 or less | Full deduction |
| More than $103,000 but less than | More than $104,000 but less than | Partial deduction | |
| $123,000 | $124,000 | ||
| $123,000 or more | $124,000 or more | No deduction | |
| Married filing jointly (spouse covered by a retirement plan at work) |
$193,000 or less | $196,000 or less | Full deduction |
| More than $193,000 but less than $203,000 | More than $196,000 but less than $206,000 | Partial deduction | |
| $203,000 or more | $206,000 or more | No deduction | |
| Married filing separately (you or spouse covered by a retirement plan at work) |
Less than $10,000 | Less than $10,000 | Partial deduction |
| $10,000 or more | $10,000 or more | No deduction |
Am I Eligible?
Nearly everyone who has earned income is eligible to contribute to an IRA of some kind. Roth IRAs have income limits that prohibit higher earners from contributing. For 2020, Roth IRA contributions are reduced if income is between $124,000 and $139,000, and contributions are not available if income exceeds $139,000. There are no income limits on traditional IRAs.
Next Steps
Fifth Third can help you set up an IRA and start planning for retirement. Learn more about traditional IRAs, Roth IRAs, and IRA rollover. For more help, visit a branch or find an advisor.
Additional Resources
Managing Your IRA Account
Your IRA isn’t just a vehicle for tax-deferred retirement savings: it can be an important and significant portion of your wealth plan.
Inheriting an IRA
After inheriting an IRA, you may have questions about IRS rules regarding making withdrawals. Age, IRA type and your relationship to the IRA owner influence distribution rules.
