Make the Most of Your IRA Contributions
For our members who contribute to an IRA or are considering opening an IRA, here is a reminder of the 2020 contribution limits for Traditional and Roth IRAs.
- Contribution Limit: $6,000.00
- Catch-up Contribution Limit (age 50 and older): $7,000.00
When it comes to your IRA, we encourage you to contribute up to the limit every year; however, you do not have to add the full amount. You may skip a year or contribute a smaller amount if you need to. You can resume making contributions at any time, but you cannot catch up for the years that no contribution was made.
If you are considering starting an IRA, keep in mind the differences and advantages of Traditional and Roth IRAs.
- Traditional IRA contributions may be tax-deductible in the year you make them, depending on your income and participation in an employer-sponsored retirement plan, such as a 401(k). When taking distributions, keep in mind the money may be taxed at the time of withdrawal.
- Roth IRA contributions are not tax-deductible; however, withdrawals are tax-free, subject to certain requirements, your age is at least 59 ½, and you have had your account for at least five years.
For more information on APCI Federal Credit Union IRAs, please call one of our IRA experts at 800-821-5104.
- Al Kauffman, Certified IRA Professional, at ext. 2840
- Michelle Roxbury, Certified IRA Professional, at ext. 2876