There’s Still (Some) Time to Contribute to Your IRA for 2019

Tax time in July? Thanks to the insanity that is 2020, that’s exactly what’s happening. As a reminder, if you haven’t yet filed your 2019 tax return, you have until Wednesday, July 15th to do so. Incidentally, this also means that you have a few more days to contribute to your IRA for last year.

If you have a Traditional IRA, you’ll be able to deduct any contributions you make from your taxable income — thus lowering your tax bill. Meanwhile, even if you have a Roth IRA, there may still be tax benefits to your contribution if you qualify for the Saver’s Credit. However, these credits are based on your income and phase out entirely for individuals with adjusted gross incomes above $32,000 a year or married couples filing jointly with AGI’s over $64,000 annually (note: these will increase to $32,500 and $65,000 respectively for the 2020 filing year).

For 2019, the maximum IRA contribution is set at $6,000 for those under 50 years old and $7,000 for those 50 and older. Therefore, if you’re able to max out your account, it could mean some significant tax savings. Plus, if both you and your spouse have separate IRAs, each of you is able to contribute up to the limit.

Obviously your ability to max out your IRA amid this ongoing crisis will greatly depend on your current status. Considering that unemployment is in the double digits and weekly jobless claims continue to top 1 million, there are clearly more important financial issues facing many Americans. That said, recent months have also seen savings rates skyrocket as, well, there hasn’t been a whole lot of things to do or fun to be had. Moreover, those lucky enough to have received stimulus funds and remained employed may find themselves with some extra money on hand. For those individuals, it may make sense to make a contribution in the next few days.

In the interest of disclosure, my wife and I actually just made our 2019 IRA contribution this week… ahead of the sure-to-be-awesome weekend I’ll get to have preparing our return. Yes, given the extra time, I was able to do what I do best: procrastinate! But, hey, that’s what deadlines are for — and this one isn’t here yet! So, if you can currently afford to put money into your retirement savings and haven’t yet filed your 2019 taxes, you may want to look into a last-minute IRA contribution before July 15th rolls around.


Kyle Burbank

Kyle is a freelance writer and author whose first book, "The E-Ticket Life" is now available on Amazon. In addition to his weekly "Money at 30" column on Dyer News, he is also the editorial director and a writer for the Disney fan site and the founder of

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