Retirement Plan Contributions
Our mission is to bring clarity, comfort and confidence to our clients and their families. Please click here or call (518) 419-6650 with questions on how to optimize your retirement plan contributions this year.
What You Need to Know
- All individuals with earned income can contribute regardless of age
- Yearly contribution limits apply as determined by the IRS
- Contributions may be tax deductible based on participation in an Employer Sponsored Plan and subject to income-based limits
- Earnings grow tax-deferred and are not taxed until distributed from the account
- Penalties may apply for early withdrawal (prior to age 59 ½)
Traditional IRA
- Must have taxable earnings (or have a spouse with taxable earnings)
- May contribute up to $6,000 (plus $1,000 catch-up, if age 50 or older) or 100% of earned income, whichever is less
- A non-working spouse may also contribute up to $6,000 (plus $1,000 catch-up, if age 50 or older) or [spouse’s earned income minus spouse’s IRA contribution], whichever is less
Roth IRA
- Must have earned income (or have a spouse with earned income) and have MAGI (Modified Adjusted Gross Income) that does not exceed phase-out thresholds
- May contribute up to $6,000 (plus $1,000 catch-up, if age 50 or older) or 100% of earned income, whichever is less
- A non-working spouse may also contribute up to $6,000 (plus $1,000 catch-up, if age 50 or older) or [spouse’s earned income minus spouse’s Roth IRA contribution], whichever is less
SEP and SIMPLE IRAs
- SEP and SIMPLE IRAs may be other available retirement plan options. Please contact us directly to discuss whether either of these might be appropriate for your circumstances.
Steward Partners financial advisors do not render advice on tax matters. Please consult a qualified professional regarding tax matters.