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What's the rule to make contributions to a traditional IRA?
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What's the rule to make contributions to a traditional IRA?

1. Maximum contribution

a. 2019: $6,000 ($7,000 if age 50 or older) 

b. 2020: $6,000 ($7,000 if age 50 or older)


2. Deduction limits

If you are covered by a retirement plan at work, you can make a full or partially deductible contribution to a Traditional IRA, based on your modified adjusted gross income (MAGI).


3. Contribution deadline 

Any person with a federal income tax return or payment due on Wednesday, April 15, 2020 is eligible for relief under the notice. You do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief. You only need to have a federal income tax return or payment due on April 15, 2020.

Because the due date for filing federal income tax returns has been postponed to Wednesday, July 15, 2020 the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

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