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The Internal Revenue Service on Thursday reminded taxpayers that contributions to traditional Individual Retirement Arrangements made by the July 15 tax return due date are deductible on a 2019 tax return.

Taxpayers can file their 2019 tax return now and claim the deduction before the contribution is actually made, the IRS said, but the contribution must then be made by the July 15 due date of the return, not including extensions.

“Most taxpayers who work and are under age 70 ½ at the end of 2019 are eligible to start a traditional IRA or add money to an existing account. Taxpayers can contribute to a Roth IRA at any age,” the IRS explained.

Starting with tax year 2020, taxpayers of any age — even those over 70 ½ — can start a traditional IRA.

Eligible taxpayers can usually contribute up to $6,000 to an IRA for 2019. The limit is increased to $7,000 for taxpayers who were 50 or older by the end of 2019.

However, the IRS explains that if a taxpayer is covered by a workplace retirement plan, the deduction for contributions to a traditional IRA for tax year 2019 is reduced if the taxpayer’s modified adjusted gross income (MAGI) is:

  • More than $64,000 but less than $74,000 for a single individual, head of household, or a married person filing separately who didn’t live with their spouse at any time in 2019. No deduction if $74,000 or more.
  • More than $103,000 but less than $123,000 for a married couple filing a joint return or a qualifying widow(er). No deduction if $123,000 or more.
  • More than $193,000 but less than $203,000 for a married couple filing a joint return where one spouse is covered by a retirement plan at work and the other is not. No deduction if $203,000 or more.
  • Less than $10,000 for a married individual filing separately and lived with their spouse at any time during 2019. No deduction if $10,000 or more.

Even though contributions to Roth IRAs are not tax deductible, for tax year 2019 the maximum amount a taxpayer can contribute is reduced if their MAGI is:

  • $122,000 or more for a single individual, head of household, or a married person filing separately who didn’t live with their spouse at any time in 2019. No contribution allowed if MAGI is $137,000 or more.
  • $193,000 or more for a married couple filing jointly or a qualifying widow(er). No contribution allowed if MAGI is $203,000 or more.
  • Less than $10,000 for a married individual filing separately and lived with their spouse at any time during 2019. No contribution if $10,000 or more.

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