Roth IRA Contribution Amounts and Deadlines
- You can contribute to a Roth IRA if you (or your spouse) have earned income* within the appropriate eligibility range.
if Under Age 50
if 50 or Over
Contributions Accepted Between
|2019||$6,000||$7,000||Jan. 1, 2019 - April 15, 2020|
|2020||$6,000||$7,000||Jan. 1, 2020 - April 15, 2021|
- If you make a contribution for the previous tax year between January 1 – April 15, attach a note with your check instructing us to post it as a “Prior Year Contribution.” A prior year contribution must be postmarked by April 15th.
- Automatic Investment Plan contributions will post as current year contributions.
- The minimum initial investment for all Sit IRA accounts is $2,000 (per fund). The minimum subsequent investment is $100.
* In 2019, earned income includes wages, salaries, tips, professional fees, bonuses, commissions, self-employment income, nontaxable combat pay, military differential pay, taxable alimony, separate maintenance payments and difficulty of care payments.
In 2020, earned income includes wages, salaries, tips, professional fees, bonuses, commissions, self-employment income, nontaxable combat pay, military differential pay, taxable alimony, separate maintenance payments, difficulty of care payments and certain stipend, fellowship and similar payments to graduate and postdoctoral students.
Roth IRA Contribution Eligibility
The amount you are permitted to contribute to a Roth IRA depends on your tax filing status and annual income.**
Caution: If your annual income** is too high, you may not be able to contribute to a Roth IRA in a given tax year. Please see the chart below for restrictions.
Eligible Contribution Income Range
Full Contribution Permitted
Partial Contribution Permitted
No Contribution Permitted
|Single or Head of Household||2019||Less than $122,000||$122,000 - $137,000||More than $137,000|
|2020||Less than $124,000||$124,000 - $139,000||More than $139,000|
|2019||Less than $193,000||$193,000 - $203,000||More than $203,000|
|2020||Less than $196,000||$196,000 - $206,000||More than $206,000|
** Annual income is your Modified Adjusted Gross Income, which is your Adjusted Gross Income before certain deductions or adjustments are made. For more information, see IRS Publication 590-A at www.irs.gov.
Roth IRA Withdrawals
You can withdraw money from your Roth IRA at any time. Whether or not your distribution is taxable depends on a few factors. See our distribution section for details. You are not required to withdraw money unless you inherited your Roth IRA.
Roth IRA Custodial Fee
- The annual custodial fee is waived if your account balance is $10,000 or more.
- The annual custodial fee for a Sit Roth IRA is $15 if your account balance is less than $10,000. We will notify you in November and you may pay the fee then or, if unpaid, we will deduct the fee in mid-December for your convenience.
- If your account balance is less than $10,000 when you close your IRA, the fee will be deducted from your check.
- Your Roth IRA contributions are reported on Form 5498 (“IRA Contribution Information”), which is mailed to you in May.
- Your Roth IRA redemptions are reported on Form 1099-R (“Distributions from IRAs”), which is mailed to you in January.
A tax credit reduces the amount of tax owed. With the IRS Saver’s Credit, you may be able to take a tax credit of up to $1,000 ($2,000 if married filing jointly) for your Roth IRA contribution.
To claim the IRS Saver’s Credit, you must be 18 or older, not be a full-time student, not be claimed as a dependent on someone else’s tax return, and your income must not exceed the appropriate thresholds referenced below.
Maximum Income Allowed Before the Saver’s Credit is No Longer Permitted
|Tax Year||Single||Head of Household||Married Filing Jointly|
For more information, see IRS Form 8880, available at www.irs.gov.