Annual Contribution Limit: | The lesser of your taxable compensation or $5,500 ($6,500 if age 50 or older) |
Contribution Age Limit: | None |
Contribution Eligibility: |
Up to the maximum is permitted if filing:
No contribution permitted if filing:
*If married filing separately a reduced contribution limit applies but there is no contribution permitted if MAGI exceeds $10,000 |
Deduction Limits: | Roth IRA contributions are not deductible |
Taxes on Distributions: | Qualified distributions are tax-free and penalty free |
RMDs: | Required minimum distribution rules only apply to Roth beneficiaries |
IMPORTANT TRUST DEADLINE APPROACHING
For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can