Missing the 60-day deadline to complete a rollover after receiving a distribution from a retirement plan or IRA can have painful consequences. There’s a simple solution, though, if you meet the requirements.
The IRS has announced increases in the amount you can save for retirement in 2019. The IRA contribution limit goes from $5,500 to $6,000, and the elective deferral limit (for 401k and similar plans) goes from $18,500 to $19,000. There is no change in the additional amount individuals age 50 or older can contribute as makeup contributions.
Be careful: You can make an IRA contribution for 2018 until April 15, 2019, but the lower $5,500 limit applies to contributions for 2018 even if made in 2019.
How well do you know Roth IRA contributions? Learn how the income limitation works, how to get around that limitation with a backdoor contribution, and limitations on that technique. Is there really such a thing as a spousal IRA? What about Roth IRAs for minors? Is it possible you’ve overlooked the retirement savings contribution credit? Our pages dealing with contributions to Roth IRAs have been updated to reflect changes in the law that took effect in 2018.
details: Contributions to Roth Accounts