IRA contribution limits and deadlines

hourglass-time-IRA-deadlines

Investing in a retirement account can be a convoluted and confusing process. IRAs are subject to some strict rules and regulations and, for this reason, it’s important to familiarize yourself with them to make the most of your retirement funds. 

Here, we go over how much you can contribute to IRAs depending on your situation, as well as what the deadlines for making these contributions are. 

What are the contribution limits for IRAs?

IRA contribution limits are set by the IRS to determine how much money you can contribute to your account. 

In this video, Joe DiDomenico, Founder of WealthFlex, goes over what the contribution limits are for IRAs.

You can make contributions to IRA accounts as long as you have ‘earned income’. This is any money that is earned either working for an employer or through self-employment. Earned income also includes spousal income if you file jointly. Earned income is different from dividends or rental income from an investment property, which are deemed passive income. 

The following table illustrates how much you can contribute to your IRA, depending on your age:

table-IRA-contribution-limits-by-age

As you can see, the amount of earned income you can contribute in a calendar year is $6,000, or $7,000 if you are 50 or older. 

Rules for IRA contributions are aggregated

It’s important to note that these contribution rules are in aggregate of all of your accounts. 

For example, you can either contribute your entire allowable amount to one single IRA account, or 1/10 of your allowable amount to 10 different IRA accounts. 

When it comes to IRAs, you’re allowed to make as many individual contributions as you like. 

You can also open an IRA account at any time to make an allowable contribution. These deadlines are the same for Traditional IRAs and Roth IRAs. 

What if I contribute to an employer-sponsored plan or I am self-employed?

Contributing to an employer-sponsored plan can be any of the following:

  1. You are participating in a 401(k) plan offered by your employer and money is being placed into this account either by you or you and your employer (contribution-matching). 
  2. You own a business with a retirement plan you are contributing to. 
  3. You work for a company that provides a pension program. 

If you are contributing to an employer-sponsored plan, it may still make sense for you to contribute to an IRA, but this money will not qualify for a current-year tax deduction.

Contributing to a Roth IRA

For those who do contribute to a 401(k), it might still make sense to contribute to a Roth IRA. With Roth IRAs, contribution limits are the same. However, if your earned income exceeds a certain amount of money, you may not be able to contribute to an IRA. 

The following table illustrates the phase-out limits for tax-filing individuals. 

table-IRA-contribution-phase-out-2020

For example, for a married person in 2020, if your adjusted gross income is more than $193,000, you begin to be phased out of being able to contribute to an IRA. When your adjusted gross income reaches $203,000, you are completely phased out. For a single filer, you begin being phased out at $122,000 and completely phased out at $137,000. For married individuals filing separately, if you make more than $10,000, you are phased out of contributing. 

For self-employed people who have established a small company plan and for people who participate in an employer-sponsored plan, contributions can be made during the tax year and up to the tax filing date of the employer including extensions.

When can IRA contributions be made?

When to contribute to your IRA is an important consideration as there are several deadlines that can affect your contribution. 

In this video, Joe DiDomenico, Director of Retirement Services at Yieldstreet, goes over the deadlines associated with retirement accounts.

IRA contributions can be made during the calendar year as the money is earned, this is called a current year contribution. They can also be made by April 15th of the following year (or the date of the tax filing, whichever is sooner), this is called a prior year contribution.  These deadlines are the same for both Traditional and Roth IRAs. 

If you’re looking for more details on IRA contribution deadlines, review IRS Publication 590A. This simple document clarifies every detail about IRA contributions. For information on employer-sponsored plan contribution deadlines, you can review IRA Publication 560.

The Yieldstreet IRA offers investors the ability to invest in Yieldstreet products with a retirement account. You can explore setting up your Yieldstreet IRA in-depth and get answers to some of the most Frequently Asked Questions about the Yieldstreet IRA. If you have any additional questions about how to set up and get started with a Yieldstreet IRA, please reach out to [email protected].

This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Any link to a third-party website (or article contained therein) is not an endorsement, authorization or representation of our affiliation with that third party (or article). We do not exercise control over third-party websites, and we are not responsible or liable for the accuracy, legality, appropriateness or any other aspect of such website (or article contained therein).

Published:

03/13/2020

How helpful is this content?

Share this article:

Join a community of 350,000+ members

  • Gain access to unique offerings previously reserved for the ultra-wealthy

  • Customize your portfolio for income, growth, or a balance of both

  • Get started today and earn an average IRR of over 8%

Sign up with email

What investors are saying about Yieldstreet

Apr 2022

The due diligence, risk management, and product education materials are thorough, excellent, and easy to use and understand.

Manoj J
Member since 2019
Apr 2022

Excellent and unique selections that I can't find elsewhere.

Jonathan S
Member since 2019
Apr 2022

The platform delivers in a very concise manner. Easy to get a clear understanding at a glance from the web or mobile app.

Tim S
Member since 2021
The testimonials presented on this page have been provided by actual investors in Yieldstreet funds without compensation. Yieldstreet has selected the testimonials, and certain testimonials have been edited to remove personally identifiable information and for brevity. Testimonials were not selected based on objective or random criteria, but rather were selected based on Yieldstreet's understanding of its relationship with the providers of the testimonials. The uncompensated testimonials presented here may not be representative of other investors' experiences, and there can be no guarantee that investors will experience future performance or success consistent with the testimonials presented.

The Yield

Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.

Since inception, over $2.5B has been invested on Yieldstreet

Join today for free to access alternative investment opportunities.

Investors

Originators

Resources

Company

App StorePlay Store

Check out our new podcast!

The Yield

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Mar 28th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378
[email protected]

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

Banking services are provided by Evolve Bank & Trust, Member FDIC.

Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure
Copyright © 2022 YieldStreet, Inc.
Privacy PolicyCookie SettingsAccessibilityTerms of UseForm ADV Disclosure Brochure