Retirement Funding

Retirement Account Funding Guidelines

There are many options for accumulation of  retirement assets.  Unfortunately there is also much confusion and inconsistancy between these options. We hope the following 2020 summary will give you some understanding of the important differences between the various retirement plans available. Before making a final decision on your retirement contributions using these vehicles, we recommend you speak with a financial professional.

A. Employee Contribution Limits For:

     IRA:    Under 50 = $6,000

     401(k), 403(b), 457(b), Roth 401(k): $19,500

     SIMPLE Plans:  $13,500

B. Catch-Up Contribution Limits.  Individuals age 50 or older may contribute an additional amount over the regular limits above as follows.

     IRA:  $1,000.

     401(k), 403(b) & 457(b), and Roth 401(k):  $6,500.

     SIMPLE Plans:  $3,000.

C. Traditional IRA Deduction Phase out Ranges.  Contributions to traditional IRA's are not "deductible" by individuals covered by an employer retirement plan if their income exceeds the phase out ranges shown below.  Individuals with income within the range get reduced deduction.

   Single Individuals & Head of Household:     In 2020:  $65,000 - $75,000 AGI.

   Married Filing Jointly:  In 2020:  $104,000 - $124,000 AGI.

D.  Roth IRA Contribution Phase out.  Contributions to a "non-deductible" ROTH IRA account are also subject to earned income limits and eligibility is eliminated when the upper phase out limit is exceeded. 

    Single Individuals & Head of Household: In 2020:  $139,000.

    Married Filing Jointly:  In 2020:  $206,000

E. Roth Conversion.   No income limit


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