This time of year, clients often ask questions about contributing to their individual retirement accounts (IRAs) since the deadline is coming soon.
IRA Contributions Deadline
The deadline to contribute to traditional IRAs, Roth IRAs, and SEP IRAs for 2021 is April 18, 2022. No, that’s not a typo, the IRS gave us all a few extra days this year, as the deadline is usually April 15th, but the 15th is a holiday this year–Emancipation Day, a holiday in Washington, D.C., is on April 15th, so Tax Day is postponed to the next business day, April 18th.
IRA Income and Contributions Limits
There are income limitations for contributing to IRAs (see below). The amount you can contribute is limited by your modified adjusted gross income (MAGI). If you exceed the income limits, the IRS does not allow pre-tax contributions to your IRA. You can, however, make after-tax contributions, but few do.
For the 2021 tax year, the income limits for IRA contributions are as follows:
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Manasa Palakodaty joined Capital Advantage in 2021. She is responsible for supporting the compliance, operations, and investment management departments as well as ensuring proper execution of the organization’s processes and procedures. Manasa has both an MBA and BS in Business Administration from Saint Mary’s College of California.
Hometown: I grew up in San Mateo County and now I live in the East Bay!
College: I received my BS in Business Administration (Finance) and MBA in Business Analytics from Saint Mary’s College of California. Go Gaels!
Favorite vacation location: My favorite trip was to Paris, France. I loved the architecture, culture, food, and history. I really want to go back!
Adjective that describes you: Artistic! I grew up painting, drawing, learning different instruments, and singing.
Favorite aspect of working at Capital Advantage: The people! I enjoy working in an environment with people who are dedicated to providing the best for their clients. I also appreciate how fun and friendly the team here is at Capital Advantage!