November 22, 2020

2020 IRA Contribution Limits

2020 IRA Contribution Limits everybody Dwight's skull here I want to welcome you back to my channel today I'm gonna talk to you about retirement and the new twenty20, rules for how much money you can put away in IRA IRAs and 401ks so the. US government wants everybody to basically put money away for their own retirement and they do this by giving us tax vehicles to do it with what does, that mean well if your company allows you to have a 401k then you can put up. To 19 thousand dollars a year per every adult in your household that has access to a 401k so if you and your spouse work. In two different sort of companies are in the same company and that company offers a 401k then you can each invest, in your own 401k for up to 19 thousand dollars a piece. And there's a tremendous amount of money that many people never max out but it is an option for, you and then if you have a traditional or Roth IRA traditional IRA is a pre-tax IRA kind of like your 401k.

They take the money out and you don't get taxed on it or if you have a Roth IRA this is what you would pay into after you've been paid by your company. Then that limit is $6,000 per year so if you want to know more about kind of the basics of retirement, stuff there's gonna be a card writer but my head that will kind of take you. To my whole playlist on retirements but what I want to do is kind of a do. A deep dive on these 401k limits and these IRA limits so also one other thing if you're over. The age of 50 you can invest up to $7,000 a year into your traditional pre-tax, IRA or your Roth post-tax IRA now know the Roth and the and the.

Traditional IRA is each have kind of a spending limit and also another limit to if you don't make. Any money whatsoever like if you don't have a job you can't invest in an IRA you have to be able to put earned income into that also if you're maybe a spouse there's a spousal. IRA so if you're a. Stay-at-home parent your spouse can put money into an IRA for you with a very specific spousal IRA but you guys can't invest in IRA if.

You're married filing jointly if you make over ninety a hundred and ninety six thousand dollars a year so if you make over one hundred and ninety six thousand dollars. A year you can't invest, in an IRA so most of the most of the planet-like most of the Americans in the country can invest in an IRA and then if you're.

Single and you're or you're married and filing separately you can't make, more than a hundred and twenty four thousand dollars in order to invest in IRA so those are kind of the rules and regulations around it.

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