2020 IRA Contribution Limit
For 2020, the IRA Contribution Limit is $6,000 (Annual contribution limit) and +$1,000 (Catch-up contribution limit, age 50 and over).
Effective 2020-01-01Source: IR-2019-179 (IRS)Verified 2026-08-29
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Annual contribution limit | $6,000 | $6,000 | +$0 (+0.0%) |
| Catch-up contribution limit, age 50 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who contribute to a traditional IRA or Roth IRA for the 2020 tax year.
What changed this year, and why
For 2020, the limit on annual contributions to a traditional or Roth IRA is $6,000. An additional catch-up contribution of $1,000 is available to individuals who are age 50 or over by the end of the year. The $6,000 IRA contribution limit was unchanged from the prior year.
Common questions
- Can I contribute more if I am 50 or older?
- Taxpayers age 50 or older may contribute an additional $1,000 on top of the $6,000 base limit.
The extra amount once you reach 50
For 2020, the regular contribution limit to a traditional or Roth IRA is $6,000. If you were age 50 or older by the end of 2020, you are allowed an additional catch-up contribution of $1,000, bringing your total limit to $7,000. This catch-up provision is automatic once you reach that age during the year - there is no separate election to make. The rule applies whether you are contributing to one IRA or several, and it applies to both traditional and Roth IRAs. The extra $1,000 is meant to help older workers build retirement savings as they approach retirement age. Note that the catch-up contribution is subject to the overall compensation limit: you still cannot contribute more in total than your taxable compensation for the year, even if the catch-up amount would otherwise allow a higher contribution.
For 2020, the most that can be contributed to your tradi- tional IRA is generally the smaller of the following amounts. • $6,000 ($7,000 if you are age 50 or older). • Your taxable compensation (defined earlier) for the year.
Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
You cannot contribute more than you earned
Your IRA contribution cannot exceed the compensation you earned during the year. Even if you are eligible for the full $6,000 limit, if your taxable compensation is lower than that amount, you can contribute only up to your compensation. The rule applies to the total of all your contributions to traditional and Roth IRAs combined. Compensation generally means wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. It also includes self-employment income, nontaxable combat pay, military differential pay, and taxable alimony. Certain items like interest, dividends, and pension income do not count as compensation for IRA purposes. This compensation limit ensures that IRA contributions are tied to actual earned income, preventing individuals with little or no work income from sheltering large amounts in tax-advantaged retirement accounts.
What Is Compensation? Generally, compensation is what you earn from working. For a summary of what compensation does and doesn’t include, see Table 1-1. Compensation includes all of the items discussed next (even if you have more than one type).
Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
Why a workplace plan can take the deduction away
If you or your spouse is covered by an employer retirement plan at work, your ability to deduct your traditional IRA contribution may be reduced or eliminated entirely. The phaseout depends on your modified adjusted gross income and your filing status. As your income rises above a certain threshold, the deduction gradually decreases until it disappears completely at a higher income level. The specific income ranges where the phaseout applies vary by whether you are single, married filing jointly, or married filing separately, and whether the coverage is yours or your spouse's. Even if the deduction is reduced to zero, you may still be able to make a nondeductible contribution to a traditional IRA up to the regular limit of $6,000, or consider contributing to a Roth IRA if your income qualifies. The phaseout rules ensure that higher-income workers with workplace retirement coverage receive less tax benefit from IRA deductions.
Deduction Phaseout The amount of any reduction in the limit on your IRA de- duction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan.
Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How late you can still contribute for a year
You can make IRA contributions for a tax year at any time during that year, or by the due date of your tax return for that year, not including extensions. For 2020 contributions, this means you had until April 15, 2021 to make your contribution, even if you requested an extension to file your return. The deadline applies to both traditional and Roth IRAs. If you miss this date, you cannot go back and make a contribution for that year. Contributions made after the deadline are treated as contributions for the next tax year. Many people wait until near the deadline to contribute, but contributing earlier in the year gives your money more time to grow tax-deferred. Check with your IRA trustee or custodian to confirm their specific procedures for accepting contributions close to the deadline.
When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. However, the time for making contributions for any year is limited. See When Can Contributions Be Made, later.
Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
The 6% tax on contributing too much
If you contribute more than the allowable limit to your IRA, the excess amount is subject to a 6% excise tax each year it remains in the account. For 2020, the maximum contribution is $6,000. If you exceed this limit, the excess will owe the 6% tax for 2020, and the same tax again for each subsequent year until you withdraw the excess. You can avoid the tax by withdrawing the excess amount, plus any earnings on it, by the due date of your tax return including extensions. The earnings on the withdrawn excess must be included in your income for the year the excess contribution was made. If you don't withdraw the excess, the 6% tax applies every year until it is corrected. This penalty encourages taxpayers to monitor their contributions carefully and correct any overages promptly to avoid accumulating penalties over multiple years.
Excess Contributions Tax If any part of these contributions is an excess contribution for 2019, it is subject to a 6% excise tax. You won’t have to pay the 6% tax if any 2019 excess contribution was withdrawn by April 17, 2020 (plus extensions), and if any 2020 excess contribution is withdrawn by April 15, 2021 (plus extensions). See Excess Contributions under What Acts Result in Penalties or Additional Taxes, later.
Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
IR-2019-179 (IRS)
- Annual contribution limit
The limit on annual contributions to an IRA remains unchanged at $6,000.
- Catch-up contribution limit, age 50 and over
The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.