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2020 IRS limits for traditional and Roth IRA's

It’s a new year with transformations to both Traditional IRAs and Roth IRA contribution, income and deductible limits, tax treatments and rules. Now is a good time to familiarize yourself with these reforms and evaluate your retirement savings and tax strategies. This list is not exhaustive and the complexity for each is too much to cover here. It is for this reason, Voya recommends you consult a tax professional to discuss these changes to IRAs and its impact to your specific situation.

Let’s break it down.


Summary of limits for both Traditional and Roth IRAs 2019/2020

We’ll start with the top revisions from 2019/2020 and then move on to a brief check list of changes specific to Traditional and Roth IRAs. While both offer varied tax incentives for saving, each is governed by a different set of rules.


  • The maximum contribution limit for both Traditional and Roth IRAs for 2019/2020 is $6,000. If you are aged 50+, you can make catch-up contributions to $7,000 annually. ¹ You can contribute to both in the same year, but combined contributions cannot exceed the $6,000/$7,000 limit. 7,²
  • Required Minimum Distributions (RMDs) for Traditional IRAs have changed from 70.5 to age 72. You must withdraw by April 1 the following the year you turn 72. RMDs do not apply to Roth IRAs if you are the original owner. ²,³
  • Your tax filing deadline (not including extensions) for 2019 allows you to make contributions to any IRA until April 15, 2020. For 2020 contributions, you have until April 15, 2021. ¹
  • In 2020, the stretch provision for non-spousal beneficiaries is eliminated, requiring a full withdrawal of funds within 10-years of inheritance. This does not include existing inherited IRAs previous to 2020, they will be grandfathered. ³ This new rule has trust fund and tax implications, so be sure to speak with an estate tax professional if this applies to you.
  • You can contribute to a Roth IRA at any age with earned income and if you meet the income limit requirements. If only one spouse works, he/she can contribute to a spousal IRA as well. 4
  • For 2019, your income limits are $137,000 (single) or $203,000 (married, filing jointly). 5
  • For 2020, your income limits are for gross incomes below $139,000 (single) or $206,000 (married filing jointly). 5
  • For taxable year 2020 and beyond, there is no longer an age limit and anyone with earned income can contribute to a Traditional IRA. For those aged 70.5 in 2019, you cannot continue to contribute in 2020 for 2019. Roth IRAs don’t have age limits and you can continue to contribute past your retirement age.  6

Traditional IRA 2020

  • Contributions can grow tax-deferred² and *may be tax-deductible¹ the year they are made.
  • Contributions may be tax-deductible if you meet income limit guidelines. Deductions 9 may be restricted if you or your spouse is covered by an employer-sponsored retirement savings plan like a 401(k) or you exceed income limits. If neither has access to a workplace savings plan, and you meet income guidelines, all contributions to an IRA are tax-deductible.², 9
  • You can make withdrawals at any time. Unqualified distributions prior to age 59.5 may penalize you a 10% early withdrawal plus income taxes. In some instances you can make an early withdrawal and avoid 10% penalty. When you withdrawal your money at your full retirement age, funds are taxed as ordinary income. 7, ²
  • You can contribute to a traditional IRA and a 401(k) in the same year. Contribution limits for each apply.
  • Taxes on excess IRA contributions can occur if you are over the annual savings limit, or make an improper rollover contribution to an IRA. 7



Roth IRA 2020

  • Contributions to a Roth IRA can grow tax-free 5 and are not tax-deductible 9.
  • Contributions can be withdrawn penalty-free and tax-free at any time for any reason. 8
  • Withdrawing unqualified earnings before age 59.5 may incur taxes taxes and penalties unless it is a qualified withdrawal. 8
  • If you are not eligible to have a Roth IRA, you can convert and roll money into one and a financial professional can help with this workaround. 7, 8
  • You can contribute to a Roth IRA even if you or your spouse have an employer-sponsored retirement savings plans at work. There are contribution limits and if your income exceed certain levels, you may not be able to contribute or deduct your contributions. 7, 8



This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.




  1. IRS
  2. Nerdwallet Traditional IRAs
  3. Voya Financial 2020 Consumer FAQs –
  4. IRS Contribution Limits
  5. IRS Traditional and Roth
  6. Boyer Ritter CPA article
  7. Kiplinger,
  8. Nerdwallet Roth
  9. IRS Deductions