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Tax Resource Center

Contribution Limits & Rules for IRA and CESA

Tax-deferred accounts have limits on the amount of money that can be contributed per year. In some cases, the rules get very detailed and take into consideration how you file your taxes, your income, and your work status. Here’s some information about the tax ramifications of how you fund your tax-deferred accounts as well as additional deduction limits and withdrawal rules.

At Thrivent Mutual Funds, we recommend you consult your tax advisor to make sure you’re getting the most out of your investments. Thrivent Mutual Funds and their representatives cannot provide legal or tax advice.

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For information on IRA deduction limits, visit the IRS website.

 

Traditional IRA

Contribution Overview

Contribution Limits

  • 2018: Lesser of $5,500 or 100% of earned income across all your Traditional and Roth IRA accounts
  • 2019: Lesser of $6,000 or 100% of earned income across all your Traditional and Roth IRA accounts
  • No contributions are allowed beginning the year you reach age 70½

Catch-up Contributions

  • If you're age 50 or older, you can increase your total IRA contribution to $6,500 for 2018 and $7,000 for 2019

Contribution Deadline

  • Typically, contributions must be made by the tax filing deadline, April 15, 2019 for the 2018 tax year

Tax-Deductible Contributions

Your traditional IRA contributions may be tax-deductible, but there are several factors that may limit and disqualify you from the deduction, depending on whether you or your spouse are covered by a retirement plan at work and/or your income exceeds certain levels. You’re considered covered by an employer retirement plan if you or your spouse have:

  • A contribution plan (profit-sharing, 401(k), stock bonus, or money purchase pension)
  • An IRA-styled plan like a SEP, SARSEP, or SIMPLE IRA
  • A benefit plan (pension that pays a retirement benefit)

Income levels are determined by your Modified Adjusted Gross Income (MAGI), which is your annual adjusted gross income with certain deductions (e.g., student loan and IRA deductions) added back in.

See IRS Publication 590-A Contributions to Individual Retirement Arrangements for more information.


 

Roth IRA

Contribution Overview

Contribution Limits

Catch-up Contributions

  • If you're age 50 or older, you may be able to increase your total IRA contribution to $6,500 for 2018 and $7,000 for 2019, based on MAGI limits

Contribution Deadline

  • Typically, contributions must be made by the tax filing deadline, April 15, 2019 for the 2018 tax year

Tax-Deductible Contributions

  • Contributions for Roth IRA don’t qualify for tax deductions

 

Coverdell Education Savings Account (ESA)

Contribution Overview

Contribution Limits

  • Limit of $2,000 per year, per student total from all contributors (across any/all educational savings accounts held) 
  • Contributions can be made by the student, parents, or any other individual or organization
  • An individual's contributions for a student may have certain limitations based on the contributor's Modified Adjusted Gross Income (MAGI)
  • You do not need earned income to make a contribution
  • See IRS Publication 970 Tax Benefits for Education

Contribution Deadline

  • Typically, contributions must be made by the tax filing deadline, April 15, 2019 for the 2018 tax year.

Deductions

  • ESA contributions aren’t deductible.

Looking for an IRS form or publication

The IRS's online resources can help.

VISIT IRS.GOV