Re: I funded my traditional IRA, $6200 and bought BA stock. My 2019 AGI was $209K. Do I have to pay a penalty. Please advise what I should do, before year end. Thanks!

I funded my traditional IRA, $6200 and bought BA stock. My 2019 AGI was $209K. Do I have to pay a penalty. Please advise what I should do, before year end. Thanks!

posted

Are you age 50 of more? The IRA contribution limit is $6,000 of under age 50 or $7,000 of older.

There is no AGI limit for Traditional IRA contributions, however if you are covered by an employer retirement plan then the deductible amount could be reduced or eliminated making is a non-deductible contribution.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Thank you for your reply. Yes, I’m 64 years old and did further research and determined it is simply a non-deductible IRA contribution. This will work out fine for me and I’ll file a form 8606 to record this contribution when I file my taxes in 2020.

Thanks again,