There is Still Time for Retirement Funding

Financial papers

There is still time to make a contribution to a Traditional IRA or Roth IRA for the 2015 tax year. The annual contribution limit is $5,500 or $6,500 if you are age 50 or over. Prior to making the contribution, if you (or your spouse) are an active participant in an employer’s qualified retirement plan, you will want to make sure your modified adjusted gross income (MAGI) does not exceed certain thresholds. There are also income limits to qualify to make Roth IRA contributions. The limits are outlined here.

2015 IRA Contribution limit: $5,500 or $6,500 (with age 50+ catch up provision)

2015 IRA Income (MAGI) Limits
Filing
Status
Traditional IRA
allowed contribution range
Roth IRA
allowed contribution range
Full
contribution
Phase-out
complete
Full
contribution
Phase-out
complete
SINGLE $61,000 $71,000 $116,000 $131,000
MARRIED
$98,000
both participating
$118,000
both participating
$183,000 $193,000
$183,000
spouse participating
$193,000
spouse participating
Note: Married Traditional IRA limits depend on whether either you, your spouse or both of you participate in a qualified employer-provided retirement plan. If married filing separate and either spouse participates in an employer’s qualified plan, the income phase-out to contribute is $0 – $10,000.

A final thought

If your income is too high to take advantage of these IRAs you can always make a non-deductible contribution to an IRA. While the contributions are not tax-deferred, the earnings are not taxed until they are withdrawn.