2018-2019 IRA Contributions, Limits and How-Tos

If you’re considering making an IRA contribution for 2018 or 2019, here are some important tips to keep in mind.


•  For individuals under the age of 50, the maximum contribution limit for 2018 is the lesser of $5,500, or total earned income. For 2019, this limit increases to $6,000.
•  For individuals age 50 and over, the annual contribution limit for 2018 is the lesser of $6,500, or total earned income. For 2019, this limit increases to $7,000.
•  The annual limit is the maximum amount that can be contributed across all your IRA accounts.

For a Traditional IRA, you must be under the age of 70½ at the end of the tax year in order to contribute.


•  For a Roth IRA, there is no age limit to contribute.
•  Taxable compensation is required to contribute to an IRA and this includes income from wages and salaries, net self-employment income, tips, commissions, bonuses and alimony. If you’re married and file a joint return, generally only one spouse needs to have compensation.

You can contribute to an IRA at any time during the year, but to count for 2018, you must make your Traditional or Roth IRA contribution by the due date of your tax return. Tax extensions do not extend the due date. This means your contributions must be made by April 15, 2019. If you contribute between January 1 and April 15, you’ll need to specify the applicable tax year for the contribution. Otherwise, your custodian must apply as a current year contribution.


•  Employer contributions to a SEP IRA for 2018 must be made for every eligible employee’s SEP IRA account by the tax filing deadline of April 15, 2019, including extensions.
•  See IRS Publication 590-A for more information on contributing to a Traditional, Roth, SEP or SIMPLE IRA.

Follow these easy steps when making your IRA contribution to your STRATA account:

•  Make your contribution check payable to STRATA Trust Company
•  Write your account number on your check.
•  Complete and include our Deposit Certification form, available at www.StrataTrust.com.
•  Mail it directly to STRATA at the address shown below (and not to your advisor or an IRA-held investment).

STRATA Trust Company
PO Box 849
Austin, TX 78767

If contributing for the 2018 tax year, envelopes must be postmarked by the U.S. Postal Service to STRATA Trust Company no later than April 15, 2019.


•  Bill payment services do not meet the IRS guidelines for USPS postmarks and can often take several days to process before remitting your payment. If making a time-sensitive contribution for 2018, it’s best to not use a bill payment service.
•  Don’t send your IRA contribution to your advisor or to an IRA-held investment. IRS regulations do not allow for IRA contributions to be accepted by these parties.
•  Custodians, like STRATA, are required to report SEP IRA contributions in the year of receipt.

strata-favicon If you have questions about IRA contributions and limits, please contact us at 866-928-9394 or Service@StrataTrust.com.
Tags: 2019 ira contribution, alternative investments, Roth IRA, SEP IRA, Traditional IRA