The deadline to make IRA contributions for tax year 2014 is April, 15 2015. The maximum contribution is $5,500 of earned income or $6,500 for those 50 and over. These amounts will stay the same in 2015.
There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution. The following table gives the phase-out range for the most common circumstances.
Do you qualify to deduct your Traditional IRA contribution?
If your income is less than the beginning of the phase-out range, you qualify. If your income is over the phase-out range, you do not. If your income falls inside the range, you partially qualify.
|Modified Adjusted Gross Income Phase-Out Range|
|Single, participates in an employer-sponsored retirement plan:||$61,000-$71,000|
|Married (filing jointly), participates in an employer-sponsored retirement plan:||$98,000-$118,000|
|Married (filing jointly), your spouse participates in an employer-sponsored retirement plan, but you do not:||$183,000-$193,000|
Do you qualify to contribute to a Roth IRA?
|Married, filing jointly:||$183,000-$193,000|
If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.
Harli Palme, CFA, CFP®