A contribution is new money you put into your IRA from outside the retirement system. This article covers how much you can contribute, when, and how the contribution gets to your Retired.com account.

A contribution is a new deposit of money into an Individual Retirement Account (IRA) from outside the retirement system — typically from a bank account or paycheck. Contributions are distinct from transfers and rollovers, which move funds that are already inside the retirement system. The Internal Revenue Service (IRS) sets annual contribution limits and rules; this article covers the framework. For the current year's specific dollar figures, see IRS Publication 590-A or contact the Service Team.

Eligibility depends on the account type:

Investment income, Social Security, and pension payments do not count as earned income for IRA contribution purposes.

The IRS sets contribution limits each year, indexed to inflation. The two structural rules to know:

Because these dollar figures change each year, this article does not list specific amounts. The current-year limits are published in IRS Publication 590-A and on the IRS website. We recommend consulting a tax advisor or attorney for guidance specific to your situation.

Two deadlines matter for contributions:

Filing an extension on your personal tax return does not extend the IRA contribution deadline.

To contribute to your Retired.com IRA:

Digital Trust, the custodian for your account, reports contributions to the IRS annually on Form 5498.

If you contribute more than the IRS allows — for example, you contribute the full limit and later realize a Roth phase-out reduced your eligibility — the excess is subject to a 6% excise tax for each year the excess remains in the account, reported on IRS Form 5329. To avoid the excise tax, you can withdraw the excess (and any earnings on it) before the tax-filing deadline. Contact the Service Team if you think you may have an excess contribution; a tax advisor can help you determine the correct amount.

You can choose to make a non-deductible contribution to a Traditional IRA — that is, to contribute and not take the deduction even if you are eligible for it. Non-deductible contributions create basis in the account, which affects how future distributions are taxed. Non-deductible contributions and basis are tracked on IRS Form 8606, which you file with your personal tax return. See "Traditional IRA — overview and eligibility."

Can I contribute to both a Traditional and a Roth IRA in the same year?
Yes, as long as your combined contributions across all your IRAs stay within the annual limit, and you are eligible for each account type (earned income for Traditional; earned income plus MAGI under the phase-out for Roth).

Can my spouse contribute to an IRA if they don't have earned income?
Yes, through a spousal IRA. If you file jointly and one spouse has earned income, the non-earning spouse can contribute to their own IRA up to the standard limit. The earned income of the working spouse must be sufficient to cover both contributions.

Does the contribution limit apply to rollovers and transfers too?
No. Rollovers and transfers — moving money that is already inside the retirement system from one account to another — are not contributions and do not count against the annual limit. See "Rollovers — moving funds from a 401(k) or employer plan" and "Transfers — moving funds from another IRA."

What happens if I miss the April deadline?
The contribution can no longer be applied to the prior tax year. You can still contribute for the current tax year, subject to that year's limits and your eligibility.

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