New 2020 IRA Rules

2020 is set up to be a weird and disappointing year for all of us. Despise all the COVID, health, and political issues occurring worldwide, it’s a great time to make sure all your 2020 retirement contributions and profiles are maximized to their fullest potential.

2020 IRA Rules
2020 IRA Rules

Summary of IRA rules for 2020

Below is a quick summary of the new IRA rules for 2020:

  • The maximum annual contribution limit for 2020 is $6,000 (or $7,000 if you’re age 50 or older).
  • Investments within the account grow tax-deferred.
  • Contributions may be tax-deductible in the year they are made.
  • The IRS requires individuals to begin taking money out of the account at age 72. (People who turned 70½ in 2019 or earlier were required to start distributions then.)
  • Unqualified withdrawals before age 59½ may trigger a 10% early withdrawal penalty and income taxes.
  • Withdrawals in retirement are taxed as ordinary income.

By maximizing your IRA contributions at the beginning of the year you enable those funds to start growing that much sooner. You generally have until April 15 to make a Traditional or Roth IRA contribution for the previous tax year. One way of getting a bigger tax refund is by maximizing your IRA contributions.

5 1 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Copyright © 2020 NewIRARules.com - All Rights Reserved.
.

The information provided on this website does not constitute professional financial advice. We do our best to maintain current & accurate information, but some information may have changed since it was published. Please consult your tax or legal advisor(s) for questions & advice concerning your personal financial situation.
Do you already have an Individual Retirement Account (IRA)?
YesORNo

Stay up-to-date with the changing IRA rules to help maximize your retirement:

Thank You!
We'll send you only important retirement changes and news that will help you manage and increase your retirement accounts.
Close