2019 IRA's income and contribution limits | Ed Slott and Company, LLC

2019 IRA's income and contribution limits

Wanted to confirm traditional and ROTH Ira contribution and AGI limits:

Husband and Wife have AGI expected in 2019 of H salary $60,000; plus S corp income (H only shareholder) $ 100,000
flowing from K1
W does not work, no other income; both under age 50 in 2019 . File MFJ

1. ROTH and traditional IRA contribution limit if husband and wife have no other pension plans nor S corp has any other plans:
2019- $ 6,000 total for H and an additional $ 6,000 total for W. They each could divide contribution between traditional and ROTH IRA any way they want, but as long as total contribution for each is no more than $6,000
2. Roth 2019 AGI INCOME limit $ 103,000 TO $ 123,000 (phaseout) to be able to contribute ?

3. Traditional IRA AGI income limits for 2019 $193,000 to $ 203,000 (phaseout) to be able to contribute?

4. AGI income for 2019 of course include salary of $ 60,000 plus $ 100,000 of S corp income or $160,000 total expected for 2019 to be considered for contribution limit tests for both ROTH and traditional IRA

5. Therefore they could not contribute to a ROTH IRA in 2019?

6 If they both contribute the maximum to a traditional IRA they would have a $ 12,000 tax deduction in 2019. Contributions must be made before 4/1/2020 or 4/15/2020?

  1. That is correct.
  2.  Joint MAGI for a Roth contribution for each (MFJ) is 193k-203k. 
  3.  There are no income limits to contribute or to deduct a TIRA contribution as long as neither are participating in a workplace plan for 2019.
  4.  160,000 MAGI is low enough for each to make a Roth contribution. There are no income limits for TIRA contributions or deductions.
  5. They CAN contribute to a Roth for 2019 as income is under the MFJ limit.
  6. Correct. Contributions must be made by 4/15/2020.
 

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