February 24, 2021

If you have not made the maximum contribution to your IRA for the 2020 tax year, you might be missing out on a potential tax deduction. The good news is that there is still time. For most individuals, you can make a contribution up to May 17, 2021 and still claim it on your 2020 tax filing, if eligible.

Here are a few additional reminders about IRAs and contributions:


 
2020 designation
 
Contact your financial institution to ensure your contribution is properly recorded for 2020.
 

 
Contribution limits for eligible individuals
 
  • Up to $6,000 (plus a $1,000 catch-up contribution if age 50 or older)
  • Married individuals who file a joint tax return can consider their spouse's income, too
  • The contribution limit applies to all your IRAs combined (Traditional and Roth)
  • View IRS guidelines
 

 
Factors that could affect eligibility and limits
 
  • Tax filing status
  • Current earned income level
  • Whether or not you participate in a retirement plan at work
  • View IRS guidelines
 

 
Calculate your contribution
 
Check out our IRA calculator.
 

 
Consult with a tax professional
 
Consider contacting a qualified tax professional to discuss your specific situation.
 

 
Time to consolidate?
 
Consolidating multiple 401(k) and IRA accounts into one IRA** could provide improved management of assets, potentially better returns, and reduced fees.
 


Have questions?

If you have any questions about IRAs, IRA contributions, or using an IRA as a part of your retirement planning strategy, feel free to reach out to Rahil Machiwalla. As the CFS financial advisor at 1st United, he’s available to meet with you by phone or you can schedule an appointment to meet with him at any 1st United branch.
 

Brought to you by...

Rahil Machiwalla
CUSO Financial Services, L.P.*
Financial Advisor
(925) 598-4718
CA Insurance Number: 0G20361

Schedule an Appointment


*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members. Please consult a qualified tax advisor for specific tax advice.

**Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.